The corporate characteristic of limited liability is more important to the shareholders than the characteristic of centralized management.

Question

Quizplus · Accepted Answer

Limited liability provides protection to the shareholders' personal assets in case of business failure, making it an important feature for them. On the other hand, centralized management is a feature that affects the decision-making power and day-to-day running of the business, which may not be as significant for the shareholders as limited liability.

The Corporate Characteristic of Limited Liability Is More Important to the Shareholders