Post Utme Futa 2023 Commerce Question 19

Practice objective / multiple choice question 19 from the 2023 Post Utme Futa Commerce examination.

Post Utme Futa 2023 Commerce Objective / Multiple Choice
Question 19 POST_UTME_FUTA • 2023 • COMMERCE • objective

A company's Memorandum of Association states that the company's business is to manufacture and sell textiles. However, the company starts manufacturing and selling electronics. What is the legal implication of this?

Answer Options

A. The company's business is still valid.
B. The company's shareholders are not protected.
C. The company's directors are liable for any business debts.
Correct Answer D. The company's business is not valid.
Correct Answer
D
Correct Option:
The company's business is not valid.

About This Question

This is Post Utme Futa 2023 Commerce Question 19. It is one of the objective questions from the 2023 Post Utme Futa Commerce examination.

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