Which of the Following Statements Best Supports the Separation of Ownership

question 30

Multiple Choice

Which of the following statements best supports the separation of ownership and control in publicly traded companies?

• A) Shareholders are liable only for the capital they invest and not for their personal wealth.
• B) Shareholders can freely trade the company stocks.
• C) Shareholders own stocks but do not run the company.
• D) Managers control the company but may also have stock ownership.

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Definitions:

Psychoticism

A personality pattern typified by aggressiveness and interpersonal hostility, often associated with the higher risk of developing psychotic disorders.

Superego Control

The aspect of the personality in Freudian psychology that represents ethical or moral constraints and strives for perfection, controlling the impulses of the id.

Introversion

A personality trait characterized by a preference for solitary activities and environments, where individuals focus more on internal thoughts and feelings rather than seeking external stimulation.

Extraversion

A personality trait characterized by an individual's preference for social interaction, high levels of enthusiasm, and energy.