Shareholders' liability for corporation debts is generally limited to:

Question

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Shareholders' liability for corporation debts is generally limited to the cost of their investment, which means they are only responsible for the amount of money they invested in the company and nothing more. This is known as limited liability, which is one of the main advantages of investing in a corporation. The market value of the shares, the par value of the shares, and total shareholders' equity are all irrelevant when it comes to determining shareholders' liability for corporation debts.

Shareholders' Liability for Corporation Debts Is Generally Limited To