Karissa is 25% owner in a corporation that builds custom machinery. Last year the corporation suffered due to intense competition. After losing $1,000,000 last year, the business is shutting its doors. The business has unpaid debts of $9,000,000. What is Karissa's personal liability?
A) $0
B) $1,000,000
C) $9,000,000
D) $10,000,000

Question

Quizplus · Accepted Answer

As a shareholder in a corporation, Karissa's personal liability is limited to her investment in the company. She is not personally liable for the corporation's debts.

Karissa Is 25% Owner in a Corporation That Builds Custom