Which of the following statements about investor-owned (for-profit) corporations is incorrect?
a. Investors become owners by purchasing shares of stock.
b. Owners have a claim on the business's residual earnings.
c. Owners exercise control by voting for the board of directors (the proxy mechanism).
d. When an individual sells his or her stock, the company receives the proceeds from the sale.
e. An investor (owner) cannot lose more than the amount of his or her investment.
Ans: d. When an individual sells his or her stock, the company receives the proceeds from the sale.
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