Which of the Following Statements Is Correct

question 96

Multiple Choice

Which of the following statements is correct?

• A)Shareholders have personal liability for a corporation's debts.
• B)Shareholders must obtain the consent of other shareholders to sell their shares or buy more shares.
• C)Limited liability partnership (LLP)partners have liability for their own actions and the actions of those under their control or supervision.
• D)Shareholders are legally prohibited from acting as an officer or employee of a corporation.

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Definitions:

Universal

Applies or is relevant to all members within a group or category without exception; embracing or applicable in all cases.

Rational Choice Theory

A framework for understanding economic and societal behavior, positing that individuals act based on their preferences and rational calculations to maximize benefit or utility.

Interacting Individuals

Interacting individuals refer to the process where two or more people communicate or affect each other’s behavior and thoughts.

Benefits

Various forms of support, often from the government, in the form of cash or services, intended to ensure the welfare and protection of citizens or employees.