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The liability of members in a company is ______. - Accounts

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Question

The liability of members in a company is ______.

Options

  • Limited

  • Unlimited

  • Stable

  • Fluctuating

MCQ
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Solution

The liability of members in a company is Limited.

Explanation:

In a company limited by shares, the liability of members (shareholders) is limited to the amount unpaid on their shares. In a company limited by guarantee, liability is limited to the amount they agree to contribute at the time of winding up.

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Chapter 6: Company Accounts - Issue of Shares - OBJECTIVE TYPE QUESTIONS [Page 6.197]

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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 (A) (i) 1. | Page 6.197
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