O-LevelAccountingThe fundamentals of accounting7707/13 · Oct/Nov 2024 · Q231 Mark
Which statement correctly describes the effect of limited liability if a business fails?
Ashareholder can only lose the money they agreed to pay for their shares.
Bshareholder risks losing all their personal possessions.
Csole trader can only lose the capital they have invested.
Dsole trader risks losing all their personal possessions.
✓ Correct answer
A: shareholder can only lose the money they agreed to pay for their shares.
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