Choose the wrong statements about a joint-stock company:(A) A company is an artificial person.(B) The company's shares are generally transferable.(C) Shareholders of a company are liable for the acts of the company.(D) Every member of a company is entitled to take part in its management.Choose the correct answer from the options given below:
- A(B) and (D) only
- B(A), (B) and (D) only
- C(B), (C) and (D) only
- D(C) and (D) only
Solution & Step-by-step Explanation
Let's assess the validity of each statement:(A) True: A company is an artificial person created by law.(B) True: In public companies, shares are freely transferable.(C) False: A key feature of a company is limited liability. Shareholders are not personally liable for the acts or debts of the company beyond their unpaid share value.(D) False: Ownership is separate from management. Management is run by elected representatives called the Board of Directors; individual members/shareholders do not participate in day-to-day operations.Statements (C) and (D) are incorrect.