Although a corporation can be taxed or sued, its owners, called ____, are not personally liable for the corporation's debts.
A) partners
B) flexible partners
C) managers
D) shareholders

Question

Quizplus · Accepted Answer

Shareholders are the owners of a corporation, but they are not personally liable for its debts. This is one of the advantages of forming a corporation. Partnerships, on the other hand, do not offer limited liability and partners can be personally responsible for the partnership's debts. Flexible partners and managers are not terms commonly used in the context of a corporation's ownership structure.

Although a Corporation Can Be Taxed or Sued, Its Owners