Question on: JAMB Commerce - 2012
A feature common to public and private limited liability companies is that
A
both can sue and be sued
B
the minimum number of their shareholders is five
C
the transfer of their shares is not restricted
D
their annual accounts are published for public use
Ask EduPadi AI for a detailed answer
Correct Option: A
The feature common to both public and private limited liability companies is their legal status as entities that can sue and be sued.
- A. both can sue and be sued: This is correct. Both types of companies are separate legal entities and can take legal action or be subject to legal action.
- B. the minimum number of their shareholders is five: This is incorrect. The minimum number of shareholders for a private limited company is typically two, while a public limited company usually requires a minimum of seven shareholders.
- C. the transfer of their shares is not restricted: This is incorrect. The transfer of shares is restricted in private limited companies.
- D. their annual accounts are published for public use: This is incorrect. While public limited companies are required to publish their annual accounts,
Add your answer
Please share this, thanks!
No responses