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.
Reason(R) - The personal properties of the shareholders can be disposed off to pay the debts of the company.
Answer & explanation
Correct answer: option 4
Limited liability: The liability of the shareholders of a company is normally limited to the amount of shares held or guarantee given by them.