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Question

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.

A
True
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B
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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