The Letters 'Ltd' After the Name of a Company Is

question 34

Multiple Choice

The letters 'Ltd' after the name of a company is a warning to creditors that:

• A) The liability of shareholders for the debts of the company is limited.
• B) The company is limited by guarantee.
• C) The shareholders have unlimited liability for the debts of the company.
• D) The shareholders have no liability for the debts of the company.

---

Definitions:

Net Profits

The sum left over once all costs, taxes, and expenses have been deducted from the total income.

Partnership Status

The legal standing of a business entity comprising two or more individuals who share management and profits.

Compensation

Payment or benefits awarded to individuals for their services, labor, or for losses suffered.

Creditors

Individuals or entities that are owed money by debtors.