If a corporation is sued and loses the lawsuit, its liability to pay

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When a corporation is sued and loses the lawsuit, its liability to pay is limited to the assets held in the corporation's name. This means that the personal assets of stockholders, CEOs, and board members are not at risk, and bondholders are not responsible for paying the damages. This is known as the principle of limited liability, which is a key advantage of operating a business as a corporation.

If a Corporation Is Sued and Loses the Lawsuit, Its