JAMB Commerce 2022 Objective — Question 5
Question 5 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2022 Objective paper, with the correct answer and a full explanation.
Advertisement
5. A distinctive feature of a limited liability company is that
- A. (A) it declares dividend every year
- B. (B) it has huge capital base
- C. (C) it is a separate entityCorrect
- D. (D) it has unlimited resources
Explanation
A limited liability company is a separate legal entity on its own that can sue and be sued, distinct from its owners.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.