JAMB Commerce 2012 Objective — Question 26
Question 26 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2012 Objective paper, with the correct answer and a full explanation.
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In case of liquidation of a public limited liability company, those that are paid first are ordinary shareholders except
- A. ordinary shareholders
- B. preference shareholders
- C. cumulative preference shareholders
- D. debenture holdersCorrect
Explanation
Debenture holders are creditors to the business. They are not part of the owner of the business, thus, they are settled first before any shareholder is settled.
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