Limited Liability in Companies Steps:

• Define limited liability: Shareholders' responsibility for company debts is restricted to their investment in shares, protecting personal assets.
• Analyze the statement: It means members risk only what they've put into the company, not more.
• Evaluate choices: Eliminate A (implies unlimited equal liability), C (confuses personal assets with share investment), D (debentures are unrelated debt instruments).
• Select best match: B aligns with liability limited to agreed share payment.

Why B is correct:

• Under company law, limited liability caps members' debt exposure at the unpaid amount on subscribed shares, as per the Companies Act definition.

Why the others are wrong:

• A: Suggests full, shared unlimited liability, like partnerships.
• C: Incorrectly ties liability to personal assets, which limited liability actually shields.
• D: Debentures represent loans to the company, not members' equity liability.

Final answer: B