JAMB Commerce 2018 Objective — Question 24

Question 24 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2018 Objective paper, with the correct answer and a full explanation.

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

A. creditors
B. debenture holders
C. preference shareholders
D. ordinary shareholdersCorrect

Explanation

When a public limited liability company liquidates, ordinary shareholders are the last to be compensated, receiving the residual amount after all other debt obligations are fulfilled.

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