A disadvantage of a corporation is that shareholders are held personally liable for the corporation's debts.

Question

Quizplus · Accepted Answer

Shareholders are generally not held personally liable for the corporation's debts. One of the main advantages of a corporation as a business structure is limited liability, which means that shareholders are only liable for the amount they have invested in the corporation and their personal assets are protected. However, there may be some exceptions to this rule, such as if a shareholder personally guarantees a loan or engages in fraudulent or illegal activities.

A Disadvantage of a Corporation Is That Shareholders Are Held