Which of the Following Statements Describes the Company Characteristic Termed

question 11

Multiple Choice

Which of the following statements describes the company characteristic termed no mutual agency?

• A)Shares can be readily bought and sold by investors on the open market.
• B)Companies pay income tax on company earnings, and shareholders pay personal income tax on company dividends and gains from sale of shares.
• C)The liabilities of the company cannot be extended to the personal assets of the shareholder.
• D)Shareholders are not authorised to sign contracts or make business commitments on behalf of the company.

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Definitions:

Money Supply

The entire aggregate of monetary assets available at a certain period in an economy.

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, banking supervision, and financial services.

Policy

A course or principle of action adopted or proposed by an organization or individual.

Board of Governors

A governing body or executive committee that oversees the policy-making, management, and proper conduct of an organization, institution, or central bank.