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On liquidation of a public limited liability company, the residual owners are the?

Commerce
JAMB 2018

On liquidation of a public limited liability company, the residual owners are the?

  • A. creditors
  • B. debenture shareholders
  • C. preference shareholders
  • D. ordinary shareholder
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Correct Answer: Option D
Explanation

Ordinary share capital refers to shares that are issued by a company that allow shareholders voting rights within a corporation. Ordinary shareholders may also receive dividends.  The value of the assets of a company net of its liabilities and any amounts of capital due to holders of shares other than ordinary shares (e.g. preference shares). If the company were to go into liquidation this would be the equity available for distribution to the ordinary shareholders.


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Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
WAEC Past Questions, Objective & Theory, Study 100% offline, Download app now - 24709
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC May/June 2024 - Practice for Objective & Theory - From 1988 till date, download app now - 99995
WAEC offline past questions - with all answers and explanations in one app - Download for free