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O-LevelCommerceBusiness enterpriseOct/Nov 2019Paper 1 Q341 Mark

What is limited liability?

AShares are issued to a set total value.
BShareholders are able to buy a limited amount of share capital.
CShareholders are repaid a percentage of their investment from company profits.
DShareholders are responsible for debts up to the total of their capital invested.

✓ Correct Answer

The correct answer is D. This question tests the candidate's understanding of business enterprise within the Commercesyllabus. 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...

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About This O-Level Commerce Question

This multiple-choice question appeared in the Cambridge O-Level Commerce (7100) Oct/Nov 2019 examination, Paper 1 Variant 1. It tests the topic of Business enterprise and is worth 1 mark.

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