Asked by Bennie Raymond on Jul 17, 2024
Verified
Shareholders have ________ liability.
A) strict
B) limited
C) absolute
D) vicarious
Limited Liability
A legal principle where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership.
- Comprehend the legal consequences and duties associated with shareholder activities and the principle of limited liability.
Verified Answer
SK
sylvie kengneJul 23, 2024
Final Answer :
B
Explanation :
The shareholders have limited liability.With few exceptions,they are not liable for the debts of a corporation after they have paid their promised capital contributions to the corporation.
Learning Objectives
- Comprehend the legal consequences and duties associated with shareholder activities and the principle of limited liability.