The genius of public corporations stems from their capacity to allow efficient sharing or spreading of risk among many investors,who can buy and sell their ownership shares on liquid stock exchanges and let professional managers run the company on behalf of shareholders.This risk sharing stems from
A) the liquidity of the shares.
B) the limited liability of shareholders.
C) the limited liability of bondholders.
D) the limited ability of shareholders.
Correct Answer:
Verified
Q10: Corporate governance can be defined as
A)the economic,legal,and
Q11: Corporate governance structure
A)varies a great deal across
Q12: The central issue of corporate governance is
A)how
Q13: The key weakness of the public corporation
Q14: The strongest protection for investors is provided
Q16: The key strength(s)of the public corporation is/are
A)their
Q17: In theory,
A)managers are hired by the shareholders
Q18: In the reality of corporate governance at
Q19: In many countries with concentrated ownership
A)the conflicts
Q20: In the United States,managers are bound by
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