Which of the Following Statements Generally Cannot Be Correct for an Investor

question 41

Multiple Choice

Which of the following statements generally cannot be correct for an investor who faces unlimited liability on an investment?

• A)The investor owns stock in the firm.
• B)The investor has no partners.
• C)The investor is subject to double taxation.
• D)The investor is responsible for managing the firm.

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Definitions:

Price Appreciation

The increase in value of an asset or security over time.

Rate Of Return

The positive or negative change in the value of an investment over a designated period, expressed as a portion of the investment's initial outlay in percentage terms.

Previous Trading

Historical trading data including prices, volume, and patterns used to predict future market behavior.

Share

A share represents a unit of ownership in a company or financial asset, entitling the shareholder to a proportion of the profits.