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WAEC Commerce 2021 Objective — Question 5

Question 5 of 50 from the West African Examinations Council (WAEC) Commerce 2021 Objective paper, with the correct answer and a full explanation.

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The word “limited” written after the name of a company means that

  • A. it has a democratic system of management
  • B. members are liable to the extent of their shareholdings onlyCorrect
  • C. the company is a going concern
  • D. profit is determined by management

Explanation

“Limited” indicates that the liability of members is limited to the amount of their shareholding in the company.

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