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Joanne Is a Shareholder of Queensland Coal Ltd

Question 14

Multiple Choice

Joanne is a shareholder of Queensland Coal Ltd. She purchased 100 shares worth $10 each. Joanne's best friend Natalie owns $1000 in debentures issued by Queensland Coal Ltd. Which of the following statements is NOT true?


A) Because it is a limited liability company as opposed to a public company, Joanne's shares can never be traded on a stock exchange.
B) If Queensland Coal becomes insolvent, Natalie's chance of getting her money back is better than that of Joanne.
C) Both Natalie and Joanne have provided part of the capital of Queensland Coal Ltd.
D) Joanne's liability is limited to the amount (if any) unpaid on her shares.
E) Joanne is a member of Queensland Coal Ltd.

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