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WAEC Economics 2018 Objective — Question 23

Question 23 of 50 from the West African Examinations Council (WAEC) Economics 2018 Objective paper, with the correct answer and a full explanation.

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In the event of bankruptcy, owners of joint-stock companies lose

  • A. their private properties
  • B. both company and private assets
  • C. only their capital investedCorrect
  • D. only their dividends

Explanation

Joint-stock (limited liability) companies protect owners such that, if the company fails, owners only lose the capital they invested — their personal assets are protected.

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