Shareholders in a corporation are personally liable for the debts of the corporation.

Name: Shareholders in a corporation are personally liable for the debts of the corporation.
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Question

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Shareholders in a corporation have limited liability, meaning they are not personally liable for the debts of the corporation beyond their investment in the company (unless they have also guaranteed the debts or engaged in illegal actions).

Shareholders in a Corporation Are Personally Liable for the Debts