Abraham Griffin has invested $ 800,000 in a privately held family corporation. The corporation does NOT do well and must declare bankruptcy. What amount does Griffin stand to lose?
A) up to his total investment of $ 800,000
B) zero
C) the $ 800,000 plus any personal assets the creditors demand
D) $ 400,000

Question

Quizplus · Accepted Answer

Griffin stands to lose up to his total investment of $800,000, as shareholders in a corporation typically have limited liability, meaning they can lose only the amount they invested.

Abraham Griffin Has Invested $ 800,000 in a Privately Held