Corporate stockholders:
A) cannot have limited liability
B) cannot easily transfer ownership
C) cannot be subject to taxes on dividends
D) can limit their liability to the amount of their investment

Question

Quizplus · Accepted Answer

Corporate stockholders can limit their liability to the amount of their investment. This means that if the company were to face financial difficulties or legal issues, the stockholders would not be personally responsible beyond the amount of their investment in the company. This limited liability is one of the primary advantages of investing in corporate stocks.

Corporate Stockholders