BUISENESS MANAGEMENT
BUSINESS STRUCTURE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which one of the following is not a characteristic of a limited company?
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It is owned by shareholders.
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Owners have limited liability.
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The company has a separate legal identity.
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The death of an owner usually results in the dissolution of the business.
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Explanation:
Detailed explanation-1: -Answer: The immunity from criminal prosecutions of the directors of a company is not a feature of a limited company.
Detailed explanation-2: -Characteristics of limited liability company include separate legal existence, limited liability, flexibility in taxation, and simplicity in operation.
Detailed explanation-3: -Limited life is not a feature of the corporate form of an organization because it limits the functioning of an organization through which company is not able to give protection to its investors.
Detailed explanation-4: -The sole proprietorship and the partnership are business entities that have unlimited liability, that is, the owners are fully responsible for the losses generated by the firm.
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