O-LevelAccountingThe fundamentals of accountingOct/Nov 2022Paper 1 Q201 Mark
Members of a limited company have limited liability for the debts of that company. What does this mean?
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.
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of the fundamentals of accounting within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🔒
Unlock the Examiner's Answer
Sign up for free to reveal the correct answer, the official mark scheme breakdown, and the examiner trap analysis for this question.
Sign Up Free to Unlock →Join thousands of Cambridge students already using Oracle Prep