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O-LevelAccountingThe fundamentals of accounting7707/11 · May/June 2023 · Q251 Mark

What is an advantage of being a member of a limited company?

ALoan capital is easy to obtain.
BDividends must be paid to the member.
CFinancial statements are prepared quickly.
DThe company is a separate legal entity.

✓ Correct answer

D: The company is a separate legal entity.

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About this question

Topic
The fundamentals of accounting, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2023 Paper 1 Variant 1, question 25.

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