Shareholders Have Limited Liability Unless They

question 37

Multiple Choice

Shareholders have limited liability unless they:

• A)are active in the management of the company.
• B)personally endorse company notes.
• C)own preferred shares.
• D)convert their shares to partnership status.

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Definitions:

Pollution

The introduction of harmful substances or products into the environment, leading to adverse effects on human health, ecosystems, or buildings.

Deadweight Loss

The decline in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium.

Tax

A required monetary fee or different kind of tax levied on a taxpayer by a government entity to finance government operations and a range of public expenses.

Buyers

Consumers or organizations that acquire products or services for direct use or ownership.