Limited liability in Economics means that
ECONOMICS
WAEC 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
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