O-LevelCommerceBusiness enterpriseOct/Nov 2015Paper 1 Q351 Mark

What is the meaning of the term limited liability?

Q: What topic does this question test?

This question tests Business enterprise in O-Level Commerce (syllabus code 7100). It is worth 1 mark.

AShares are issued to a set total value.

BShareholders are paid back a percentage of their investment from company profits.

CShareholders are responsible for debts up to the total of their capital invested.

DShareholders can buy a limited amount of share capital.

✓ Correct Answer

The correct answer is C: Shareholders are responsible for debts up to the total of their capital invested.

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This O-Level Commerce Question

Topic

This multiple-choice question tests Business enterprise in O-Level Commerce (syllabus code 7100). It is worth 1 mark.

Source

This question appeared in the Cambridge O-Level Commerce Oct/Nov 2015 examination, Paper 1 Variant 1.

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