Which of the Following Statements Describes the Corporate Characteristic Termed

question 148

Multiple Choice

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

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

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Definitions:

Word Processing

The use of computer software to create, edit, and print documents.

Office Administrator

An individual responsible for overseeing the daily operations of an office.

Printing

The process of reproducing text and images, typically with ink on paper using a printing press or a printer.

Monetary Products

typically refers to financial products or instruments that are directly related to money or the management of money, such as currency, loans, and investment vehicles; however, this term is not widely used in formal economic contexts and might be considered non-standard.