Jason Hansen has invested $600,000 in a privately held family corporation.The corporation does not do well and must declare bankruptcy.What amount does Hansen stand to lose?
A)Up to his total investment of $600,000.
B)Zero.
C)The $600,000 plus any personal assets the creditors demand.
D)$400,000.

Question

Quizplus · Accepted Answer

Hansen stands to lose up to his total investment of $600,000, as shareholders in a corporation are typically only liable for the amount they have invested.

Jason Hansen Has Invested $600,000 in a Privately Held Family