Limited Liability Means

question 37

Multiple Choice

Limited liability means:

• A)the liability of shareholders for company debts is normally limited to the amount they have paid for their shares.
• B)the liability of directors for company debts is limited.
• C)if the company fails, the creditors may have to bear greater losses than if they were dealing with a non-company.
• D)Both A and C.

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Definitions:

Mathematical Average

A statistical measure representing the sum of values divided by their quantity.

Modal Score

The most frequently occurring value in a set of data, which represents the mode.

Median Score

The median score represents the middle value in a sorted list of numbers, essentially splitting the dataset into two halves.

Mean Score

The average score obtained by computing the sum of all individual scores and dividing by the number of scores.