CUET Preparation Today
| Assertion(A)- The liability of the shareholders of the company is unlimited. Reason(R) - The personal properties of the shareholders can be disposed off to pay the debts of the company. |
Both A and R are true, but R is not the correct explanation of A A is correct, but R is incorrect A is incorrect, but R is correct Both A and R are incorrect |
| Both A and R are incorrect |
| Limited liability: The liability of the shareholders of a company is normally limited to the amount of shares held or guarantee given by them. |
