Ed Tresh has invested $400,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Tresh stand to lose?

Name: Ed Tresh has invested $400,000 in a privately held family corporation. The corporation does not do well and must declare bankruptcy. What amount does Tresh stand to lose?
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Question

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Ed Tresh stands to lose up to his total investment of $400,000 because, as an investor in a corporation, his liability is limited to the amount he invested.

Ed Tresh Has Invested $400,000 in a Privately Held Family