Jaronda founded Diamond Communications Inc. in 1993. Ten years later, the company went public. Despite Jaronda's death in 2005, the company reported a 75 percent increase in revenue in 2006. Which of the following characteristics of a publicly traded company does this scenario best exemplify?
A. limited liability for investors
B. legal personality
C. separation of legal ownership and management control
D. transferability of investor ownership
Answer: B
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When retiring treasury stock, retained earnings could be affected under which of the following methods? Cost Method Par Value Method I. No No II. No Yes III. Yes No IV. Yes Yes ?
A) I B) II C) III D) IV
A six-year operating lease requires annual rent payments of $15,000 for years 1, 2, and 3, and annual rent payments of $10,000 for years 4, 5, and 6. The agreement also requires the lessor to pay a $2,800 annual insurance premium for the leased property. Which of the following amounts should be recognized as the rental revenue in year 1 by the lessor?
A) $10,000 B) $13,500 C) $15,000 D) $16,800
In a limited liability company, profits are taxed as income to corporation and again as income to owners when distributed as dividends
Indicate whether the statement is true or false
The economic production lot size represents the maximum quantity of on-hand inventory for a manufacturer
Indicate whether the statement is true or false