Limited liability in Economics means that

ECONOMICSWAEC 1990

Limited liability in Economics means that

  • A. a shareholder's liability in the event of debt or bankruptcy is limited to the amount he has invested
  • B. a shareholder's liability for the debt company is dependent on how much he is owing
  • C. shareholders can not be asked to pay for the debts of the company
  • D. shareholders try to ensure that only a small proportion of the debt comes to them

Correct Answer: A. a shareholder's liability in the event of debt or bankruptcy is limited to the amount he has invested

Explanation

No explanation is available for this question at this moment. If you can provide an explanation to help other student learn, please post it below
Back to WAEC 1990 QuestionsPrevious QuestionNext Question


Post an Explanation Or Report an Error

If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly.

Your email address will not be published. Required fields are marked *

Don't want to keep filling in name and email whenever you make a contribution? Register or login to make contributing easier.