Which of the Following Statements Describes the Company Characteristic of Transferability

question 98

Multiple Choice

Which of the following statements describes the company characteristic of transferability of company ownership?

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

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Definitions:

Package Surprise

An unexpected benefit or gift included with a purchase, often used as a marketing strategy to enhance customer satisfaction and loyalty.

Order Taker

A salesperson whose primary responsibility is to process routine orders or reorders or rebuys for products.

Routine Orders

Orders that are made regularly and often automatically, involving products or services that are needed on an ongoing basis.

Reorders

The process of placing additional orders for a product or service that has been previously purchased or consumed.