Match List-I with List-II.
| LIST I | LIST II |
| (A) Companies Limited by Shares | (I) When the company's property is not sufficient to pay off its debts, the private property Shares of its members can be used for the purpose |
| (B) Companies Limited by Guarantee | (II) Restricts the right to transfer its shares |
| (C) Unlimited Companies | (III) If a member has paid the full amount of the shares, there is no liability on his part whatsoever for the debts of the company |
| (D) Private Company | (IV) The liability of its members is limited to the amount they undertake to contribute in the event of the company being wound up |
Choose the correct answer from the options given below
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II)
Companies are classified by the liability of their members (limited by shares, limited by guarantee, unlimited) and by the number of members (public, private).
(A) Companies Limited by Shares — this matches (III) If a member has paid the full amount of the shares, there is no liability on his part whatsoever for the debts of the company. Liability is limited to the nominal value of shares held.
(B) Companies Limited by Guarantee — this matches (IV) The liability of its members is limited to the amount they undertake to contribute in the event of the company being wound up.
(C) Unlimited Companies — this matches (I) When the company's property is not sufficient to pay off its debts, the private property of its members can be used for the purpose. There is no limit on liability.
(D) Private Company — this matches (II) Restricts the right to transfer its shares. Its articles must restrict the transfer of shares.
NCERT (2026-27 edition): NCERT (2026-27 edition): NCERT (2026-27 edition):
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