Question

Question 2 1 pts Which of the following descriptions concerning shareholders and stakeholders is INCORRECT? A shareholder can be an individual, company, or institution that owns at least one share of a company and therefore has a financial interest in its profitability. Stakeholders can be owners and shareholders, employees of the company, bondholders who own company issued debt customers who may rely on the company to provide a particular good or service, suppliers and vendors who may rely on the company to provide a consistent revenue stream Shareholders often care the most about the long-term future of the company. Shareholders are owners of the company, but they are not liable for the company's debts. Question 3 1 pts Which of the following concerning the history of the development of modern corporation is correct? Many company names in the English-speaking world come with the letter L-PLC, LLC, Ltd. etc. The letter Lin these acronyms stands for "limited," short for "limited liability." Before the invention of the limited liability company in 16th century Europe-or the joint stock company businessmen had to risk everything when they started a venture. By the mid-19th century, with the emergence of large-scale industries such as railways, steel and chemicals, the countries of Western Europe and North America made limited liability available-mostly in the 1860s and 70s. Since then, capitalism was transformed from a system made up of pin factories, butchers and bakers, with at most dozens of employees and managed by a sole owner, into a system of huge corporations hiring hundreds or even thousands of employees, including the top managers themselves with complex organizational structure. All of the above are correct.

Answer 1

Answer 2

First option is true as it defines shareholder correctly

Second option is also true as it defines stakeholders correctly

Third option is also true

Fourth option is incorrect as shareholder are liable for debt as well.

Hence fourth option is the answer