WAEC Commerce 2002 Question 8

Question 8

Business Units

Which of the following are features of a limited liability company? I. Separate legal entity II. Right to sue but not be sued III. Has its own corporate name IV. The liability of members is limited

  1. A.I, II and III
  2. B.II, III and IV
  3. C.I, II and IV
  4. D.I, III and IV
Show the answer and explanation

Answer: D (I, III and IV)

Explanation

A company can sue and be sued, so II is false; I, III and IV are features.