You are 50% owner in a catering corporation. The business is closing down because it has $250,000 in unpaid business debts and just lost a $750,000 lawsuit. What is your personal liability?
A) $0
B) $125,000
C) $250,000
D) $750,000

Question

Quizplus · Accepted Answer

In a corporation, owners (shareholders) have limited liability, meaning they are not personally responsible for the business debts and liabilities of the corporation. This means that their personal assets are protected, and they can only lose the money they invested in the corporation.

You Are 50% Owner in a Catering Corporation