Accounting 0452 · IGCSE · Limited companies

Limited companies — practice question

The members of a limited company are only liable up to the amount of the company’s debts they have agreed to cover. What is meant by this?

  • AMembers are equally liable for the debts of the company.
  • BMembers are liable only up to the value of their personal assets.
  • CMembers are liable only up to the amount they agree to pay for their shares in the company.
  • DMembers are liable only up to the value of the debentures they hold in the company.

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