Question

For a guarantee company the liability of shareholder is ____________.

• A. amount of guarantee specified in memorandum
• B. amount of guarantee given on paper
• C. both A & B
• D. unlimited

Answer 1

The correct option is A amount of guarantee specified in memorandum

A guarantee company is a type of corporation designed to protect members from liability. Guarantee companies often form when non-profit organizations wish to attain corporate status. For a guarantee company the liability of shareholder is amount of guarantee specified in the memorandum.