Limited Liability Refers to

question 71

Multiple Choice

Limited liability refers to

• A)whether the entity ceases to exist with a change in ownership.
• B)who manages the entity.
• C)whether the owners are risking any more than they invested in the firm.
• D)the ease with which ownership can be transferred.

---

Definitions:

Dollar

A widely used currency in international trade, often associated with the United States Dollar (USD), recognised by the symbol $.

Managed Float System

An exchange rate system in which a country's currency value is allowed to fluctuate in response to foreign exchange market mechanisms, with occasional intervention by the country's monetary authorities to stabilize the currency's value.

Exchange Rates

The value of one currency expressed in terms of another, determined by the foreign exchange market.

Production of X

The process of creating, manufacturing, or generating a specific product or service, denoted here as X.