O-LevelCommerceBusiness enterprise7100/11 · Oct/Nov 2019 · 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

D: 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 2019 Paper 1 Variant 1, question 34.

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