Which of the following is a feature of individual investors in a corporation?
A) They have limited liability.
B) They can lose more than their original investments.
C) They are prohibited from selling their shares to new owners at any time.
D) They cannot own the corporation collectively.

Question

Quizplus · Accepted Answer

Individual investors in a corporation typically have limited liability, meaning they are not personally responsible for the corporation's debts or obligations. This is a key feature that makes investing in a corporation attractive. Option B is incorrect because individual investors cannot lose more than their original investments. Option C is incorrect because individual investors can typically sell their shares to new owners, subject to any restrictions outlined in the corporation's bylaws or shareholder agreements. Option D is incorrect because individual investors collectively own the corporation through their ownership of shares.

Which of the Following Is a Feature of Individual Investors