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O-LevelAccountingThe fundamentals of accounting7707/13 · Oct/Nov 2022 · Q221 Mark

Which statement about the members of a limited company is correct?

ATheir liability is limited to the total of their investment in the company.
BTheir liability is limited to the total of their personal assets.
CThey are not liable for the debts of the company.
DThey have unlimited liability for the debts of the company.

✓ Correct answer

A: Their liability is limited to the total of their investment in the company.

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About this question

Topic
The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, Oct/Nov 2022 Paper 1 Variant 3, question 22.

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