ibps-so 2018 · Question 175 of 356

Which one of the following best expresses the central argument of the passage?

1. AThat limited liability is a statutory bargain which made large enterprise possible by shifting risk away from the shareholder, and which is defensible only so long as the conditions attached to it hold that shifted risk in checkCorrect
2. BThat limited liability is a natural right of the investor which no legislature may properly qualify
3. CThat the abolition of limited liability would restore honesty to commerce and ought to be undertaken at once
4. DThat the chief merit of the joint-stock company lies in the convenience with which its shares may be exchanged
5. EThat the conditions which the law attaches to incorporation are a needless burden upon enterprise