Which entity is liable for a corporation's debts?

Question

Quizplus · Accepted Answer

The corporation itself is a separate legal entity and therefore is liable for its own debts. While stockholders own the corporation and the board of directors manages it, they are not personally liable for the corporation's debts (unless they have engaged in illegal or fraudulent activities). The corporation's president also does not assume personal liability for the corporation's debts, unless they have engaged in illegal or fraudulent activities.

Which Entity Is Liable for a Corporation's Debts