ibps-so 2018 · Question 177 of 356

According to the passage, why would the prudent saver have refused to subscribe under the older rule of unlimited liability?

1. ABecause the returns o ered upon such subscriptions were too small to be worth the trouble
2. BBecause a modest holding carried an unbounded risk and he was in no position to inspect the books of the undertakingCorrect
3. CBecause the law of the time forbade a saver to hold shares in more than one company
4. DBecause the promoters of such undertakings were, as a class, held to be dishonest
5. EBecause there existed no market upon which a share might afterwards be sold