JAMB Economics 2022 Objective — Question 38

Question 38 of 40 from the Joint Admissions and Matriculation Board (JAMB) Economics 2022 Objective paper, with the correct answer and a full explanation.

38. When a business has unlimited liability,

A. (A) when the business winds up, its debts will be paid from its assets and the assets of the ownerCorrect
B. (B) when the business winds up, its debts are payable only from its assets
C. (C) when the business winds up, its debts are payable with the assets of the owner
D. (D) when the business winds up, its debts will be written off

Explanation

If a business has unlimited liability, its debts will be payable with both its own assets and the assets of the owner when it winds up.

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.

Create free account

More questions from Economics 2022 Objective More Economics past papers