Which of the Following Statements Describes the Company Characteristic Termed

question 59

Multiple Choice

Which of the following statements describes the company characteristic termed limited liability?

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

---

Definitions:

Natural World

The aspects of the environment and life that are not created or significantly altered by human beings, including flora, fauna, geology, and climate.

Alexis de Tocqueville

A French political thinker and historian best known for his works "Democracy in America" exploring the effects of the rising equality of social conditions.

American Society

The social structure, culture, and community life of the United States.

Individualism

A social theory favoring freedom of action for individuals over collective or state control.