Limited liability exists when
A. the liability of owners is limited to the share of the debt they personally took on.
B. partners specialize and each partner is responsible for the debts of his or her specialized area.
C. the liability of owners is limited to the value of the shares in the firm they own.
D. bondholders must receive their payments before stockholders can earn any money.
Answer: C
You might also like to view...
What is the rationale behind a marketable emission allowance scheme?
A) to discipline polluting firms by specifying the maximum amount of emissions allowed and giving them permits to pollute up to their allowance B) to provide firms with the incentive to consider less costly alternatives to pollution reduction by making firms pay for the right to pollute beyond their specified allowance C) to raise revenue for the government through the sale of emission permits and at the same time set an emissions target D) to create a market for externalities: the scheme brings together buyers and sellers of marketable permits
An unplanned increase in inventories results from
A) actual investment that is less than planned investment. B) an increase in planned investment. C) a decrease in planned investment. D) actual investment that is greater than planned investment.
Bertha holds some of her savings as currency and coins placed in her sewing basket. This is an example of
A) precautionary demand for money. B) asset demand for money. C) transactions demand for money. D) wealth demand for money.
Which of the following will most likely be an unanticipated economic change?
What will be an ideal response?