Question

Select the proper option from the options given below and rewrite the completed sentences.

The liability of the shareholders in the public limited joint stock company is ________.
(a) limited
(b) unlimited
(c) collectively

Answer 1

Correct option- a
The liability of the shareholders in the public limited joint stock company is limited.
Explanation:
The liability of shareholders is limited to the amount of their investment in the shares. Because of the company’s legal status, the company’s liabilities are its own; thus, personal property of shareholders cannot be used to pay the liabilities.