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.

---

Definitions:

Undeveloped Countries

Countries with poor economies; problematically implies a lack of economic talent or exposure.

Dependency Theory

A theoretical perspective that criticizes the global economic system as perpetuating inequality between developing and developed nations.

World Systems

A socio-economic model that emphasizes the world-economy as a complex system structured by political and economic relations that extend across global territories and peoples.

Modernization Theory

A theory suggesting that traditional societies will develop economically as they adopt more modern practices and technologies.