Ask Question
20 February, 14:12

Jaronda founded Diamond Communications Inc. in 1993. Ten years later, the company went public. Despite Jaronda's death in 2005, the company reported a 75 percent increase in revenue in 2006. Which of the following characteristics of a publicly traded company does this scenario best exemplify?

A. limited liability for investors

B. legal personality

C. separation of legal ownership and management control

D. transferability of investor ownership

+2
Answers (1)
  1. 20 February, 14:19
    0
    Answer: C. separation of legal ownership and management control

    Explanation: Public traded company can go on with their operation undisturbed when the founder dies, because there is separation of ownership from management of the company.

    Public traded companies usually have a board which management report to, the board is the highest decision making body in the company.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Jaronda founded Diamond Communications Inc. in 1993. Ten years later, the company went public. Despite Jaronda's death in 2005, the company ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers