Which of the Following Statements Describes the Company Characteristic Termed

Multiple Choice

Which of the following statements describes the company characteristic termed limited liability?

A) Companies pay income tax on company earnings, and shareholders pay personal income tax on company dividends and gains from sale of shares.
B) The liabilities of the company cannot be extended to the personal assets of the shareholder.
C) Shareholders are not authorised to sign contracts or make business commitments on behalf of the company.
D) Company shares can be readily bought and sold by investors on the open market.