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The liability of every shareholder of a Company is ______. - Accounts

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Question

The liability of every shareholder of a Company is ______.

Options

  • Limited

  • Unlimited

MCQ
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Solution

The liability of every shareholder of a Company is Limited.

Explanation:

Shareholders are liable only up to the unpaid amount on their shares. They are not personally responsible for the company's debts beyond their shareholding.

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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.151]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 6 Company Accounts - Issue of Shares
OBJECTIVE TYPE QUESTIONS | Q (iv) | Page 6.151
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