The value of the item. ♀️
Answer:
Option E. Control Activities
Explanation:
Control activities is a part of Control environment and in the given scenario, the company has a system of policies and procedures implemented to ensure whether the approved activities are carried out or not. This includes the segregation of duties, as the Compensation Committee is assigned the task to reviewing whether the payments that were made to the senior executives, both cash and equity based payments, are consistent with their contracts or not. Furthermore if it is not complied by the contract then relevant actions are carried out. So these are best represented by control activities.
Answer:
limited liability
Explanation:
This is still true, limited liability is one of the main reasons why investors keep buying shares from corporations.
Limited liability refers to a condition held by the owners of certain companies (e.g. corporations, limited liability partnerships) where shareholders or partners are legally responsible for the company's obligations only to the extent of the money they invested in the company. For example, I bought $10,000 worth of stock of XYZ Corp., if XYZ goes bankrupt, I can lose my $10,000 but nothing more.
