The liability of the shareholders in the public limited joint stock company is ________.

Question

Select the proper option from the options given below and rewrite the completed sentence. 

The liability of the shareholders in the public limited joint stock company is ________. 

Options 

• limited 
• unlimited 
• collectively

Answer 1

The liability of the shareholders in the public limited joint stock company is limited. 

Explanation: 

The liability of shareholders is limited to the amount of their investment in the shares. Because of the company’s legal status, the company’s liabilities are its own; thus, personal property of shareholders cannot be used to pay the liabilities.