O-LevelCommerceBusiness enterpriseOct/Nov 2020Paper 1 Q361 Mark

When all the assets of a limited company that has ceased to trade have been sold, it still has liabilities of $250 000. To pay off that debt, how much will each of its 20 shareholders be liable for?

Q: What is the correct answer to this O-Level Commerce question?

The correct answer is D: zero 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.

A$12500

Bcontribution determined by the type of share they own

Ccontribution determined by the value of their shareholding

Dzero liability

✓ Correct Answer

The correct answer is D: zero liability

📋 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 2020 examination, Paper 1 Variant 1.

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