Which of the Following Statements Describes the Company Characteristic of Transferability

question 61

Multiple Choice

Which of the following statements describes the company characteristic of transferability of company ownership?

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

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