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From course:

Basic Financial Accounting Short Questions

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Question:

Which of the following is an advantage of a limited liability company over that of a sole trader business? Select one alternative: A A sole-trader has limited liability for the business’ debts B Dividends can be paid from sole-trader businesses but not from limited liability companies. C Shareholders liabilities for the company’s debts are limited to the amount invested in the shares D A sole-trader business has an unlimited life while a limited liability company does not

Author: Gonza R



Answer:

C Shareholders liabilities for the company’s debts are limited to the amount invested in the shares


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Gonza R
Gonza R