--%>

Corporations stockholders not liable for debts

The corporation’s stockholders are not personally liable for the debts of firm since: (1) The Corporation is considered as a legal person, separate from its owner. (2) Usually there are too many stockholders to try to hold them all accountable. (3) In a corporation there is limitless liability of the owners. (4) None of the above.

Can someone please help me in finding out the accurate answer from the above options.

   Related Questions in Microeconomics

  • Q : Price equality with marginal costs It

    It is not possible for a nondiscriminating, that profit maximizing monopolist to attain equilibrium where MR = MC as well as: (w) economic profit = 0. (x) economic profit is negative. (yz marginal costs are at the minimum of average costs [MC = ATC].

  • Q : Diseconomies of Scale Diseconomies of

    Diseconomies of Scale: The diseconomies are the drawbacks occurring to a firm or a group of firms due to big scale production.Internal Diseco

  • Q : Drop in interest rates of capital market

    Any drop in interest rates caused through people’s increased willingness to save, which will cause: (w) the rate of return schedule reflected in I0 to shift to the right. (x) the rate of return schedule reflected within I0 to shift to the left.

  • Q : Determine total revenue when prices fall

    As the price falls by P4 to P3 to P2 to P1 beside such demand curve for Pixie's cheesy fried grits, then total revenue: (w) always rises. (x) always falls. (y) rises then falls. (z) falls then rises.

    Q : Substitution Effect-relative price of

    The substitution effect signifies to the change in consumption pattern as: (1) The absolute price of the good modifications. (2) Income changes. (3) The relative price of good changes. (4) The quality of good changes. Can someone p

  • Q : Profits of monopoly firm A monopoly

    A monopoly firm's profits: (w) equal only normal profits in long-run equilibrium. (x) may be whatever level the firm wishes. (y) are maximized where MC = MR. (z) tend to be lower than that of pure competitors. Hell

  • Q : Problem on certainty of punishment

    Raising the severity and certainty of punishment decreases the cheating on examinations. This statement imitates: (1) Misplaced cynicism as this issue is ethical, not economic. (2) Purely normative views of the behavior. (3) Unrealistic expectations regarding student

  • Q : Rental check of pure economic rent The

    The part of your monthly rental check which shows pure economic rent is that that pays only for the use of the landlord's: (w) land. (x) capital. (y) labor. (z) entrepreneurial skills. I need a goo

  • Q : Quantity Equilibrium I have the

    I have the quantity functions of demand and supply for two different goods, and I have to find the equilibrium of both the goods. Would I make all four functions equal to each other to find the equilibrium for the two goods? Or am I supposed to do something else?

  • Q : Monopsony and Marginal Resource Cost

    The labor monopsonist which doesn’t wage discriminates consists of a marginal resource cost curve [or marginal factor cost curve] which is above the labor supply curve then the firm faces as: (1) Monopsonists encompass market power in the markets for output. (2)