nominal value of shares
extent of their private assets
paid up value of shares
accounts called up
Answer is Right!
Answer is Wrong!
The correct answer is: A. nominal value of shares.
A shareholder’s liability is limited to the nominal value of their shares. This means that they are not personally liable for the debts of the company, even if the company goes bankrupt. The nominal value is the face value of the share, which is usually stated on the share certificate.
The other options are incorrect because:
- Option B, extent of their private assets, is incorrect because shareholders are not personally liable for the debts of the company.
- Option C, paid up value of shares, is incorrect because the paid up value of shares is the amount of money that has been paid for the shares. This is usually less than the nominal value of the shares.
- Option D, accounts called up, is incorrect because accounts called up is the amount of money that the company has called up from shareholders. This is usually less than the paid up value of the shares.