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Question
The liability of members in a company is ______.
Options
Limited
Unlimited
Stable
Fluctuating
MCQ
Fill in the Blanks
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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]
