Which of the Following Statements Is TRUE of the Liability

question 100

Multiple Choice

Which of the following statements is TRUE of the liability of investors in a corporation?

• A) Majority investors are personally liable, whereas minority investors are not personally liable.
• B) Investors have personal liability for the business transactions in corporations.
• C) Investor's liability is limited to the amount invested in the corporation.
• D) Investors are personally liable for transactions, whereas their property is not liable.
• E) Investors' property is liable for the business transactions but investors are not personally liable.

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Definitions:

Decentralization

The distribution of decision-making power and authority from a central figure or location to multiple smaller units or levels within an organizational hierarchy.

Specialized Jobs

Positions that focus on specific tasks or responsibilities, requiring particular skills or training.

Training Costs

The expenses associated with the process of educating or teaching employees new skills, knowledge, or behaviors related to their jobs.

Work Efficiency

The effectiveness with which tasks and goals are accomplished within the workplace, often measured by the ratio of output generated to the input required.