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The liability of shareholders of a public company is limited to the _________.
Answer & Solution
Correct Answer:
Option
C
The liability of shareholders of a public company is limited to the paid up value of shares. "Limited by shares" means that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. the paid up value of the shares and any premium paid in return for the issue of the shares by the company.
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LoginRight answer is nominal value of shares