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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