Which of the Following Statements Describes the Company Characteristic Termed

question 31

Multiple Choice

Which of the following statements describes the company characteristic termed limited liability?

• A)Companies pay income tax on company earnings,and shareholders pay personal income tax on company dividends and gains from sale of shares.
• B)Shareholders are not authorised to sign contracts or make business commitments on behalf of the company.
• C)The liabilities of the company cannot be extended to the personal assets of the shareholder.
• D)Company shares can be readily bought and sold by investors on the open market.

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Definitions:

Independent Federal Agency

A government body within the executive branch that operates outside of the direct control of the President or cabinet, often with regulatory or specialized functions.

Protect Consumers

This term relates to laws and regulations aimed at ensuring the rights and safety of consumers in the marketplace.

Deceptive Advertisements

False or misleading claims made in advertising to persuade consumers to buy a product or service.

Civil Suits

Legal proceedings initiated by individuals or entities seeking to resolve non-criminal disputes or claims against others.