If a company suffers heavy losses and its assets are not enough to pay off its liabilities, the balance can be recovered from the private assets of its members.

True

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False

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Solution

The correct option is B False
Statement is false because, in the view of limited liability of the members and shareholders of a company, they are not liable to pay any amount from their private assets if company suffers any loss or get into liquidation.

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If a company suffers heavy losses and its assets are not enough to pay off its liabilities, the balance can be recovered from the private assets of its members.

The correct option is B FalseStatement is false because, in the view of limited liability of the members and shareholders of a company, they are not liable to pay any amount from their private assets if company suffers any loss or get into liquidation.

The correct option is B False
Statement is false because, in the view of limited liability of the members and shareholders of a company, they are not liable to pay any amount from their private assets if company suffers any loss or get into liquidation.