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WAEC Economics 2018 Question 23

Question 23

Business Organisations

In the event of bankruptcy, owners of joint-stock companies lose

  1. A.their private properties.
  2. B.both company and private assets.
  3. C.only the capital invested.
  4. D.only their dividends.
Show the answer and explanation

Answer: C (only the capital invested.)

Explanation

Limited liability means shareholders lose only what they invested.