Shareholders

The shareholders of a company have unlimited liability.

• True

• False

Which of the following is not a characteristic of a company?

• Separate legal existence

• Unlimited liability for shareholders

• Easy transferability of ownership interests

If a business ceases operations and liquidates, which of the following will be paid last?

• Shareholders.

• General creditors.

• Employees.

• Creditors who have security for their loans.

Preference shareholders typically have the right to receive a dividend before ordinary shareholders.

• True

• False

Which of the following is NOT a preferential shareholders right in a private company?

• The right of preemption

• The right to share in dividends.

• The right to vote on the board of directors.

• The right to participate in management decisions.

A company where all the shares are owned by another company is called a (INSERT THE CORRECT ANSWER).

• joint venture

• parent company

• subsidiary