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

---

Definitions:

Minimum Price

The lowest possible selling price, set by agreement or regulation, below which a product cannot legally be sold.

Heart Rate Monitor

An electronic device used to track the heart rate, often used during exercise to monitor intensity or for medical monitoring purposes.

Marginal Change

A small adjustment to an existing set of conditions or a system, measuring the effect of a one-unit increase or decrease in some variable.

Centrally-Planned Economy

An economic system where all major decisions regarding production, distribution, and consumption are made by the government.