The Liability of Shareholders in 'Limited Liability' Companies Means

question 97

Multiple Choice

The liability of shareholders in 'limited liability' companies means:

• A) creditors of a company can call upon the shareholders in the case of company default to contribute an amount based only on the current market price of the shares.
• B) shareholders are only liable for any amount that is unpaid on the shares of a company.
• C) in the event of company default, the creditors have no claim on the shareholders for any contribution.
• D) shareholders do not have a right to participate directly in the day-to-day management of a company.

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Definitions:

Pleasure

A feeling of happiness, satisfaction, or enjoyment that can be derived from physical, emotional, or cognitive experiences.

Transcranial Magnetic Stimulation (TMS)

A method of stimulating brain cells, using a powerful magnetic field produced by a wire coil placed on a person’s head; it can be used by researchers to temporarily inactivate neural circuits.

Temporarily Inactivated

Refers to something that has been made inactive or non-functional for a short period of time.

Brain Area

Specific regions within the brain that are associated with particular functions, such as the frontal lobes with decision making or the hippocampus with memory.