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