BM Week 4: Private, For Profit, and Non-Profits

Shareholders are the joint owners of a limited liability 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 a publicly traded company.

• true

• false

The financial statements (company annual accounts) of publicly traded companies must be made public and are easily accessible.

• true

• false