Asked by Angel Martinez on Jun 28, 2024
Verified
If a corporation goes bankrupt,its stockholders will lose
A) only the value of their stock.
B) the value of their stock plus any other business assets which they may own.
C) the value of their stock plus any other personal assets which they may own.
D) the value of their stock plus any other business and personal assets which they may own.
Bankrupt
A legal status for individuals or entities that cannot repay the debts they owe to creditors.
Stockholders
Individuals or entities that own shares in a corporation, giving them ownership stakes in the company.
Personal Assets
Items of value owned by an individual, including cash, property, and investments.
- Understand the impact of corporate structure on liability and investment.
Verified Answer
MH
Milan HernándezJul 03, 2024
Final Answer :
A
Explanation :
When a corporation goes bankrupt, its stockholders will lose only the value of their stock. They are not liable for the corporation's debts beyond the amount they invested in the company, so their personal assets are not at risk.
Learning Objectives
- Understand the impact of corporate structure on liability and investment.
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