- 1 Marks
BCL – L1 – SA – Q60 – Types of Capital
Question
The word “limited” in a company name can point to the fact of limited
A assets
B liability
C profit
D business
E All of these
Answer
B
Explanation:
The correct answer is B because “limited” in a company name indicates limited liability, meaning shareholders’ liability is restricted to their investment in the company. Assets (A), profit (C), and business (D) are unrelated to the term “limited,” and E is incorrect as only B applies.
- Tags: Company Law, Company Name, Limited liability
- Level: Level 1
- Uploader: Samuel Duah