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drek231 [11]
3 years ago
5

Travis owns shares of Lobster Krown Inc., a food and beverages company. The company's financial situation takes a turn for the w

orse and ends up in severe debt. Despite owning shares of Lobster Krown, Travis is not responsible for bringing more money into the company to get it out of its debt. Which characteristic of public stock companies does this scenario best exemplify?
Business
1 answer:
sleet_krkn [62]3 years ago
5 0

Answer:

<em>limited liability for investors </em>

Explanation:

Limited liability is a form of legal framework for an entity in which the amount of money invested in a corporation or limited liability company will not surpass a corporate loss.

In certain phrases, private assets of investors and shareholders are not at risk if the business fails.

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3 years ago
Suppose a company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk. To acc
Andreas93 [3]

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Explanation:

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7 0
3 years ago
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Explanation:

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How would the issuance of common stock for cash affect the accounting​ equation?
shepuryov [24]

Answer:

Explanation:

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3 0
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