Economics WAEC

In the event of bankruptcy owners of joint-stock companies lose?

A. their private properties
B. both company and private properties
C. only the capital invested
D. only their dividends

Correct Answer: Option C

C. only the capital invested

Explanation

Joint-stock company is a company whose stock is owned jointly by the shareholders.

In the event that a joint-stock company declares bankruptcy, the company’s shareholders may be entitled to a portion of the liquidated assets, depending on which shares they hold and how much liquid assets are leftover.

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