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:

Regulatory Policies

Rules or directives formulated by a governing body to regulate activities within specific areas or industries for public benefit.

Low Down-payment Loans

Loan types that require a smaller initial payment from the borrower, often used in the context of home mortgages.

Interest Rate Policy

A component of monetary policy, often set by a central bank, that determines the level of interest rates to influence economic activity.

Federal Regulations

Rules set by the federal government to control and guide the practices of businesses, individuals, and other organizations within the country.