Question 3
Business UnitsWhich of the following are true about limited liability companies?
I. They have a separate legal identity from their owners
II. Members' liability is limited to their paid-up shares
III. They cannot own property in their own name
IV. They have perpetual succession
- A.I and III only
- B.I, II and IV only
- C.II and III only
- D.All of the above
Show the answer and explanation
Answer: B (I, II and IV only)
Explanation
A company is a separate legal person with limited liability and perpetual succession, so it can own property in its own name.