Asked by Hannah Crenshaw on Apr 24, 2024
Verified
Shareholders do not have limited liability for corporate debts.
Limited Liability
A legal structure that limits the amount of money that company owners or shareholders can lose in case the business fails, typically their investment in the company.
Corporate Debts
Obligations that a corporation owes to creditors, which can include bank loans, bonds, and other forms of borrowing.
- Understand the legal mandates and outcomes related to corporate rules, real estate, and accountability.
Verified Answer
SL
Shannon Lytes6 days ago
Final Answer :
False
Explanation :
Shareholders of a corporation have limited liability, meaning their personal assets are not at risk for corporate debts. If the corporation goes bankrupt or cannot pay its debts, shareholders can only lose the amount of money they invested in the company.
Learning Objectives
- Understand the legal mandates and outcomes related to corporate rules, real estate, and accountability.