NABTEB Economics 2022 Objective — Question 23
Question 23 of 50 from the National Business and Technical Examinations Board (NABTEB) Economics 2022 Objective paper, with the correct answer and a full explanation.
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A disadvantage of a joint-stock company is
- A. unlimited liability
- B. limited liability
- C. lack of continuity when a shareholder dies
- D. limited control in management by shareholdersCorrect
Explanation
In a joint-stock (limited liability) company, the business is managed by the Board of Directors on behalf of shareholders, giving individual shareholders limited control over management.
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