JAMB Economics 2018 Objective — Question 25

Question 25 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2018 Objective paper, with the correct answer and a full explanation.

A business organisation in which there is a limitation to the amount of losses a shareholder can sustain in the event of business failure, by law, is a

A. Limited liability companyCorrect
B. Sole proprietorship
C. Public enterprise
D. All of the above

Explanation

In a limited liability company, a shareholder's loss is legally limited to the amount of their shareholding/investment.

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