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Unlimited liability in business implies that the

Commerce
WAEC 2010

Unlimited liability in business implies that the

  • A. risk of the owner is limited only to the amount invested
  • B. debts are paid with subventions
  • C. property of the owners should not be used to secure loans
  • D. owners private property can be used to settle the business debts
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Correct Answer: Option D
Explanation

Unlimited liability means you are exposed to potential losses based on company obligations. In the event of liquidation the personal property of its owner is used to settle the business debt


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
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