Accounting 0452 · IGCSE · Limited companies

Limited companies — practice question

Which statement accurately explains the effect of limited liability when a business fails?

  • AA shareholder can only lose the money they agreed to pay for their shares.
  • BA shareholder risks losing all their personal possessions.
  • CA sole trader can only lose the capital they have invested.
  • DA sole trader risks losing all their personal possessions.

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