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WAEC Economics 1993 Question 12

Question 12

Business Organisations

Which of the following does not apply to private companies?

  1. A.The number of shareholders is limited
  2. B.The liability of shareholders is limited
  3. C.Accounts have to be publicized
  4. D.The companies are separate legal entities
  5. E.Shares are not easily transferable.
Show the answer and explanation

Answer: C (Accounts have to be publicized)

Explanation

A private company has limited members, limited liability, separate legal identity and restricted share transfer, but it does not publish its accounts to the public.