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Question
A company provides its members with limited liability but requires them to contribute a specified amount in case of winding up. What type of company is this?
Options
Company Limited by Guarantee
Unlimited Company
Private Company
One Person Company
MCQ
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Solution
Company Limited by Guarantee
Explanation:
The members of this type of business have limited responsibility, they remain liable to pay a certain amount towards the company’s debts in the event that it is wound up.
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