From a Shareholder's Viewpoint, What Is the Key Benefit of Limited

question 39

Multiple Choice

From a shareholder's viewpoint, what is the key benefit of limited liability?

• A) Shareholders are only liable up to the amount they have invested or promised to invest.
• B) The company's liabilities are limited to the total authorised capital.
• C) The company's liabilities are limited, ensuring that shareholders can always recover their investment.
• D) Shareholders are only liable up to the amount that the company owes its creditors.

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Definitions:

Klinger's Model

A psychological theory that focuses on how goals motivate individuals by influencing their behavior and emotions.

Central Motive State

A hypothetical internal state that motivates behavior toward achieving a specific goal or satisfying a particular need.

Goal-Directed Behaviors

Actions taken by an individual or organism with the intention of achieving a specific outcome or fulfilling a particular purpose.

Bindra

A theorist known for contributing to the understanding of motivation and emotion through the concept of drive reduction.