Shareholders in a Company Have Limited Liability,which Means That

question 6

Multiple Choice

Shareholders in a company have limited liability,which means that:

• A)shareholders can be called upon to contribute only the amount unpaid on shares held in the company.
• B)the maximum the shareholders can be called upon to contribute is the current market price of the shares.
• C)shareholders can never be called upon to make an additional contribution to the company's assets.
• D)shareholders have little or limited interest in the activities of management of the company,because the management and ownership of the firm are separated.

---

Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specified amount of money, either on demand or at a set time, with the payer named on the document.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, including sales of goods and secured transactions.

Mobile Devices

Portable computing gadgets, such as smartphones and tablets, that allow users to access, process, and manage information on the go.

UCC Article 4

A section of the Uniform Commercial Code that deals with bank deposits and collections, outlining the rights and liabilities of banks and their customers.