The correct response is:
owners have limited liability for debt.
This is a key advantage of corporations, as it protects the personal assets of the owners (shareholders) from being used to settle the corporation's debts.
An advantage of a corporation is that (1 point)
Responses
the business is subject to little government intervention.
the business is subject to little government intervention.
owners pay fewer taxes than owners of other forms of business.
owners pay fewer taxes than owners of other forms of business.
owners have limited liability for debt.
owners have limited liability for debt.
owners have direct and immediate control over daily management of the business.
2 answers
Which of the following examples describes a publicly held corporation?(1 point)
Responses
A local gaming cafe is owned and operated by the same group of friends that founded it years ago. Nobody holds stock in the gaming cafe.
A local gaming cafe is owned and operated by the same group of friends that founded it years ago. Nobody holds stock in the gaming cafe.
A small restaurant chain, founded and operated by a single family, is owned by shareholders who purchase their shares on the stock exchange.
A small restaurant chain, founded and operated by a single family, is owned by shareholders who purchase their shares on the stock exchange.
A nation-wide fast-food chain is owned and operated by the same family that founded it. Nobody holds stock in the fast-food chain.
A nation-wide fast-food chain is owned and operated by the same family that founded it. Nobody holds stock in the fast-food chain.
A local jewelry store is owned by its founders who hold but do not sell shares in the company.
Responses
A local gaming cafe is owned and operated by the same group of friends that founded it years ago. Nobody holds stock in the gaming cafe.
A local gaming cafe is owned and operated by the same group of friends that founded it years ago. Nobody holds stock in the gaming cafe.
A small restaurant chain, founded and operated by a single family, is owned by shareholders who purchase their shares on the stock exchange.
A small restaurant chain, founded and operated by a single family, is owned by shareholders who purchase their shares on the stock exchange.
A nation-wide fast-food chain is owned and operated by the same family that founded it. Nobody holds stock in the fast-food chain.
A nation-wide fast-food chain is owned and operated by the same family that founded it. Nobody holds stock in the fast-food chain.
A local jewelry store is owned by its founders who hold but do not sell shares in the company.
1 answer