If a public corporation goes bankrupt and does not have enough assets to pay off all creditors:

Question

Quizplus · Accepted Answer

Stockholders cannot lose more than the amount they have invested in the corporation. They are not personally liable for any debts incurred by the corporation, and creditors are only entitled to the assets of the corporation, not the personal assets of the stockholders. Therefore, option D is the correct answer.

If a Public Corporation Goes Bankrupt and Does Not Have