GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Unlimited liability and an unlimited number of shareholders.
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Limited liability and a limited number of shareholders
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Limited liability and an unlimited number of shareholders.
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Unlimited liability and limited number of shareholders
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Detailed explanation-1: -The liability of shareholders of a company is limited to the issue price of the shares they have subscribed to i.e. a company is a limited liability entity.
Detailed explanation-2: -In a limited liability company or partnership, business partners are only liable for the amount of money they have put into the company. In an unlimited liability company, the owner is inextricable from the business and is personally accountable for the company’s liabilities.
Detailed explanation-3: -A PLC designates a company that has offered shares of stock to the general public. The buyers of those shares have limited liability, meaning that they cannot be held responsible for any business losses in excess of the amount they paid for the shares.
Detailed explanation-4: -Led by Board of Directors. Public limited companies are headed by a board of directors. Limited Liability. Shareholder liability for the losses of the company is limited to their share contribution only. Number of Members. Transferable shares. Life Span. Financial Privacy. Large Capital. High Costs. More items