Shareholders, Acting Solely as Shareholders, Can Incur Obligations on Behalf

question 3

True/False

Shareholders, acting solely as shareholders, can incur obligations on behalf of the corporation in which they hold shares.

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Definitions:

Profit Margin

A financial ratio that shows the percentage of revenue that remains as profit after all expenses have been paid, including costs, taxes, and interest.

Return On Assets

A performance metric that measures the efficiency of a company in generating profit from its assets.

Return On Equity

Return on equity (ROE) measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.