How Does the Principle of Limited Liability Make a Corporation

question 66

Multiple Choice

How does the principle of limited liability make a corporation well suited to raising large amounts of capital?

• A) information is publically disclosed regarding a corporation's finances
• B) a corporation's investors are protected against limited losses
• C) a corporation is subject to greater outside scrutiny
• D) investors are protected against unlimited losses

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Definitions:

Active Cell

In spreadsheet software, the cell in which data is entered or active at any given time, usually highlighted or indicated by a border.

Page Layout

The arrangement of visual elements on a page, such as text, images, and shapes, designed to convey a specific aesthetic or functional message.

View

In computing, this term refers to the way in which information is displayed or rendered on the screen, often customizable by the user.

Insert

A command used in many applications, allowing the user to input or add new data or elements into a document or file.