Which of the Following Characteristics of a Company Limits a Shareholder's

question 101

Multiple Choice

Which of the following characteristics of a company limits a shareholder's loss to the amount of his or her investment in the shares of the company?

• A)Separate legal entity
• B)Separation of ownership and management
• C)Transferability of ownership
• D)Limited liability

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Definitions:

Maximum Potential

The highest level of performance, ability, or achievement that is possible or achievable.

Self Determination Movement

A political or social movement advocating for the right of people to self-govern and make decisions free from external influence.

Supervision

The act of overseeing or directing work or workers, often involving guidance, support, and instruction in a professional or educational context.

Responsibility

A duty or task that one is required or expected to perform.