Asked by Paige Taylor on May 25, 2024
Verified
A key advantage of the corporate form is the unlimited liability of its owners.
Unlimited Liability
A business obligation where owners are personally responsible for all of a company's debts.
Corporate Form
The legal structure of a business recognized as a separate entity from its owners, providing limited liability.
Owners
Individuals or entities that legally possess property, businesses, or assets.
- Gain insight into the notion of limited liability for shareholders and the exceptions that lead to unlimited liability.
Verified Answer
EM
Esmeralda MorenoMay 27, 2024
Final Answer :
False
Explanation :
In a corporate form of organization, the owners (shareholders) have limited liability, meaning they are not personally responsible for the business debts and liabilities of the corporation beyond their investment in the company.
Learning Objectives
- Gain insight into the notion of limited liability for shareholders and the exceptions that lead to unlimited liability.