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3 February, 09:38

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

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  1. 3 February, 10:25
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    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.
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