Limited Liability of Shareholders Means

question 49

Multiple Choice

Limited liability of shareholders means

• A)dividends will be paid regardless of net income.
• B)creditors have no legal claim on a shareholder's personal assets.
• C)the life of the corporation is limited.
• D)deferral or reduction of taxes.

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Definitions:

Economic Principles

Foundational concepts and theories that guide the analysis of economic behavior, decision-making processes, and the allocation of resources.

Political Process

The methods and actions used to formulate and apply policies within a government or political system.

Representative Democracy

Representative democracy is a form of government in which citizens elect representatives to make decisions and govern on their behalf, rather than each citizen voting on every issue directly.

Government Action

Measures or operations taken by a government to regulate or influence economic or social outcomes.