Direction: In the question given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements which one of the following is correct? Assertion (A) The shareholders are liable to the extent of the amount paid to the shares held by them. Reason (R) Only the assets of the company can be used to settle the debts. Codes

• A. Both A and R are true and R is the correct explanation of A
• B. A is true, but R is false
• C. Both A and R are false
• D. Both A and R are true, but R is not the correct explanation of A