Shareholders in a company have limited liability,which means that:
A)shareholders can be called upon to contribute only the amount unpaid on shares held in the company.
B)the maximum the shareholders can be called upon to contribute is the current market price of the shares.
C)shareholders can never be called upon to make an additional contribution to the company's assets.
D)shareholders have little or limited interest in the activities of management of the company,because the management and ownership of the firm are separated.

Question

Quizplus · Accepted Answer

Limited liability means that shareholders are only required to contribute the amount unpaid on their shares in the company. They are not personally responsible for any debts or obligations beyond that amount.

Shareholders in a Company Have Limited Liability,which Means That