O-LevelCommerceBusiness enterprise7100/11 · Oct/Nov 2015 · Q351 Mark

What is the meaning of the term limited liability?

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

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

Oracle Prep sorts past-paper questions by topic, so you can drill Business enterprise and see which topics are most likely to come up next.

Topic: Business enterprise, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2015 Paper 1 Variant 1, question 35.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content