Which of the Following Is a Characteristic of a Public

question 106

Multiple Choice

Which of the following is a characteristic of a public stock company?

• A) Shareholders who provide risk capital are liable for all losses incurred by the company.
• B) Investor ownership cannot be transferred easily between investors.
• C) Legal personality allows a firm's continuation beyond the founder or the founder's family.
• D) In publicly traded companies, professional managers are the legal owners of the company.

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Definitions:

Financial Statements

These are formal records of the financial activities of a business, person, or other entity, providing an overview of a financial position at a point in time.

Remitting Profits

The process of sending back earnings to a company's home country or investors.

Long-Run Exposure

The risk faced by investors or companies that emerge from long-term financial decisions or market conditions.

Strengthening Economies

Refers to economies that are experiencing growth in GDP, employment rates, and trade, indicating an overall improvement in financial health.