Joan Barskey acquired 4,500 shares in Barskey Inc., a corporation that is controlled by her family. The cost of these shares was $900,000. In addition, she has personally guaranteed a bank loan for Barskey Inc. in the amount of $250,000. If Barskey Inc. goes bankrupt, which of the following statements is correct?
A) Joan's financial risk is limited to $1,150,000.
B) Joan's financial risk is limited to $900,000.
C) Joan's financial risk is limited to $250,000.
D) Joan's financial risk is unlimited.
Correct Answer:
Verified
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