How Does the Principle of Limited Liability Make a Corporation

question 66

Multiple Choice

How does the principle of limited liability make a corporation well suited to raising large amounts of capital?

• A) information is publically disclosed regarding a corporation's finances
• B) a corporation's investors are protected against limited losses
• C) a corporation is subject to greater outside scrutiny
• D) investors are protected against unlimited losses

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Definitions:

Evaluative Criteria

Standards or benchmarks that consumers use to compare and assess the merit or value of products and services.

Supplier Development

A business strategy where buying firms work closely with their suppliers to improve the supplier's product or service quality, efficiency, and effectiveness.

Organizational Buyers

Entities that purchase goods and services for use in the production of other products or services, for resale, or for organizational operation.

Buyer's Needs

The requirements or desires that consumers have when looking to purchase products or services.