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Limited liability in Economics means that

Limited liability in Economics means that
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A A shareholder's liability in the event of debt or bankruptcy is limited to the amount he has invested
  • B A shareholder's liability for the debt company is dependent on how much he is owing
  • C Shareholders can not be asked to pay for the debts of the company
  • D Shareholders try to ensure that only a small proportion of the debt comes to them
  • E Shareholders want all the debts paid equally
Correct Answer: Option A
Explanation:

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