In a publicly traded corporation,which of the following is responsible for business debts and activities?
A)The individual stockholders.
B)The board members.
C)The owners.
D)The corporation itself.

Question

Quizplus · Accepted Answer

In a publicly traded corporation, the corporation itself is a separate legal entity responsible for its own debts and activities. This is known as the principle of limited liability, which means that the individual stockholders are not personally responsible for the corporation's debts beyond their investment. The board members are responsible for overseeing the corporation's activities, but not liable for its debts. The owners could refer to either the stockholders or the board members, but neither are responsible for the corporation's debts and activities beyond their roles within the company.

In a Publicly Traded Corporation,which of the Following Is Responsible