Walter and Gordon are the shareholders of a small private Ontario company,which recently went bankrupt due to the world wide recession,owing $100 000.00 to its creditors.Unfortunately the company's assets are only $50 000.00.In this case,the amount available to satisfy the creditors of the company will be
A)$50 000.00 plus Gordon's assets only.
B)$50 000.00 plus Walter's assets only.
C)$50 000.00 plus the assets of both Walter and Gordon.
D)$50 000.00 only.
E)none of the above

Question

Quizplus · Accepted Answer

In the case of bankruptcy, the assets of the company will be sold off to satisfy the creditors. In this case, the assets of the company only amount to $50,000, which will be the amount available to satisfy the creditors. The personal assets of the shareholders, Walter and Gordon, are not relevant to this scenario and will not be used to satisfy the company's debts. Therefore, the correct answer is D, $50,000 only.

Walter and Gordon Are the Shareholders of a Small Private