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In the event of bankruptcy, owners of joint-stock companies lose

Economics
JAMB 2024

In the event of bankruptcy, owners of joint-stock companies lose

  • A. both company and private assets
  • B. only the capital invested
  • C. only their dividends
  • D. their private properties
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Correct Answer: Option B
Explanation

In a joint-stock company, the owners (shareholders) invest their capital by purchasing shares of the company. If the company goes bankrupt, the owners may lose the value of their invested capital. They may not receive any return on their investment and could potentially lose the entire amount they invested in the company. However, their loss is limited to the capital they invested, and their personal assets are generally protected.


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