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.

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