Which of the Following Statements Is Not True in Regards

question 7

Multiple Choice

Which of the following statements is not true in regards to companies?

• A)Members are only liable for the debts of the company if they have not fully paid for their shares.
• B)The business can continue if the directors die or resign their positions.
• C)They must report to the Australian Securities and Investments Commission (ASIC).
• D)Directors usually require shareholder approval for important management decisions.

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Definitions:

Asset Allocation

The investment strategy of dividing a portfolio among different asset categories, such as stocks, bonds, and cash to minimize risk and maximize returns.

Investment Adviser

A person or organization that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or through written publications.

Investment Process

A systematic approach or series of steps taken by investors or fund managers to identify, select, and allocate funds to various securities or investments to achieve specific financial goals.

Systemic Risk

The risk of collapse of an entire financial system or entire market, due to the failure of a single entity or group.