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:

Cause-and-effect Conclusions

Deductive reasoning that connects an action or event (the cause) to outcomes or consequences (the effect), establishing a causal relationship.

Descriptive/Correlational Research

A research method that involves observing and describing the behavior of a subject without influencing it in any way, often used to identify patterns or relationships between variables.

Systematically Observes

Methodically and rigorously watching and recording phenomena or behaviors for analysis.

Association

A connection or relationship between two ideas, thoughts, or events, often based on experiences or learning.