The maximum amount of money that company shareholders can lose on their investment in the corporation is
A) whatever percentage of their wealth equals their percentage of ownership.
B) whatever they paid for the shares in the company.
C) whatever the corporation loses each year times the percentage of ownership in the company.
D) zero.

Question

Quizplus · Accepted Answer

The maximum amount of money that shareholders can lose on their investment in a corporation is limited to what they paid for their shares. This is because shareholders are not personally liable for the debts of the corporation beyond their investment in the company's stock.

The Maximum Amount of Money That Company Shareholders Can Lose