- 1 Marks
Question
What is the unique feature of limited companies?
A. The owners of the company have limited liability
B. The proprietors’ capital in a limited company consists of share capital
C. There are dividends for the company owners
D. Limited companies have access to bank loan
E. Limited companies prepare statements of profit or loss
Answer
A. The owners of the company have limited liability
Explanation:
Limited liability means that the shareholders’ financial responsibility for the company’s debts is restricted to the amount they invested in the company, protecting their personal assets
- Tags: Business Entities, Corporate Features, Limited Liability Companies
- Level: Level 1
- Topic: Accounting Concepts
- Series: NOV 2013
- Uploader: Theophilus