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.

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Definitions:

Activist Investors

Activist investors are shareholders that use their equity stake in a corporation to influence its management and operations, often with the goal of increasing shareholder value.

Institutional Investors

Large entities, such as pension funds, mutual funds, and insurance companies, that make substantial investments in various financial markets.

Financial Performance

An assessment of how well a firm uses assets from its primary mode of business and generates revenues.

Stock Price

The current price at which a share of a company is traded on the stock market, reflecting the market's supply and demand for the stock.