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WAEC Commerce 1999 Question 16

Question 16

Business Units

A major advantage of the private company over a partnership is that the private company

  1. A.can sell shares
  2. B.has limited liability
  3. C.can publish its account
  4. D.is allowed to borrow from commercial banks
Show the answer and explanation

Answer: B (has limited liability)

Explanation

Shareholders of a private company have limited liability, while ordinary partners do not.