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.

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Definitions:

Cultural Differences

The variations in the ways of life, beliefs, norms, and behaviors among different groups of people or societies.

Susceptible

Likely to be influenced or harmed by a particular thing or condition.

Alcoholics

Individuals who suffer from alcoholism, a chronic disease characterized by uncontrolled drinking and preoccupation with alcohol.

Active Ingredient

The component in a product, especially in pharmaceuticals, that is responsible for its therapeutic effect.