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Business Studies

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XYZ private c...

Question

XYZ private company had reduced to minimum number of members and continued business more than 6 months. The company's liability will be ______________.

A

limited

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B

unlimited

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C

no change in liability

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D

all of the above

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Solution

The correct option is A unlimited
Unlimited liability refers to the legal obligations of general partners and sole proprietors because they are liable for all business debts if the business can't pay its liabilities.

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