1.2 REVISIT

Shareholders are the joint owners of a company.

• TRUE

• FALSE

Shareholders participate in the day-to-day running of the company.

• TRUE

• FALSE

The liability of shareholders is restricted to the capital they invested in the company.

• TRUE

• FALSE

A company is a separate legal entity from its owners.

• TRUE

• FALSE

The board of directors has decision-making authority within the company.

• TRUE

• FALSE

Shares in the company are transferable but require consent of other shareholders.

• TRUE

• FALSE

Shares in the company can be bought and sold only through a stock exchange.

• TRUE

• FALSE

Any member of the general public can purchase shares in a publicly traded company.

• TRUE

• FALSE

There is a lack of ownership and control should a major shareholder sell their stake in the company.

• TRUE

• FALSE

The financial statements (privately held company annual accounts) must be made public and are easily accessible.

• TRUE

• FALSE