The ________ is a general rule of corporate law that provides that generally,shareholders are liable only to the extent of their capital contributions for the debts and obligations of their corporation and are not personally liable for the debts and obligations of the corporation.

Question

Quizplus · Accepted Answer

The concept of limited liability of shareholders is a fundamental principle of corporate law. It means that the shareholders' personal liability is limited to the amount of their investment in the company, and they are not liable for the debts and obligations of the corporation beyond that amount. This protection allows investors to invest in a company with reduced risk and encourages entrepreneurship and investment in the economy. The other options (A, C, and D) are not applicable to this concept.

The ________ Is a General Rule of Corporate Law That