Q10. Consider the four levels of financial decision making. Which of these state

Question

Q10. Consider the four levels of financial decision making. Which of these statements is correct? A. B. C. D. E. Individuals or institutions who purchase equity in a corporation are the owners of the firm. A corporation cannot enter into contracts, be sued or acquire property. The limited liability enjoyed by sole proprietorships is an advantage of this form of business organisation. Partnerships are like corporations in that they continue to exist in the event of a partner dying or leaving the firm. At a personal level, individuals do not need to manage the risks associated with financial decisions

Explanation / Answer

Four level of financial decision making- Are as following:

Among the above statements, statement "A" is correct that says, "Individuals or institutions who purchase equity in a corporation are the owners of the firm.

This statement is true as if any individual or a group of people or institution, they are called the shareholders of the company/firm and they get the ownership and voting rights in the company. Equity shareholders are the owners of the company.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.