Ignacio Inc. is a public stock company. Which of the following statements about the company best illustrates the fact that its investors have limited liability?
A. Shareholders of Ignacio are not permitted to trade their company stock at the New York Stock Exchange (NYSE).
B. Shareholders of Ignacio are responsible to the company only to the capital they have invested.
C. Employees of Ignacio are also the owners of the company.
D. Employees of Ignacio are legally permitted to invest their capital in the company's stock.
Answer: B
You might also like to view...
If the company has not decided on the required rate of return to use in its capital budgeting process, the company cannot calculate the net present value and internal rate of return
Indicate whether the statement is true or false
Through the U.S. Generalized System of Preferences (GSP), developing countries may export goods duty-free to the United States if they ________
A) demonstrate progress toward protecting the natural environment B) demonstrate progress toward improving the rights of their workers C) agree to exempt U.S. imports from local content rules D) belong to the World Trade Organization (WTO) E) participate in a reciprocal free trade zone
A retail company sells agricultural produce and consumer products. The company procures materials from farmers and local producers. This process is an example of ________.
A. internal marketing B. operational management C. inbound logistics D. customer service E. outbound logistics
If a bond's stated interest rate is lower than the market rate, which of the following is true?
A) The bond will be issued at a premium. B) The bond will be issued at par. C) The bond will be issued at a discount. D) The bond will be issued for an amount higher than the maturity value.