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An arrangement in which the debts of a company can only be paid from its own assets ...

An arrangement in which the debts of a company can only be paid from its own assets implies
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Unlimited liability
  • B Transferred liability
  • C Limited liability
  • D Capital liability
Correct Answer: Option C
Explanation:
Limited liability is a kind of legal protection whereby owners and shareholders have no personal responsibility for their company's debts and financial losses.. In other words, investors' and owners' private assets are not at risk if the company fails.

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