If the corporation fails, stockholders are responsible for
A) all of the debts of the corporation
B) only the amount owed in dividends
C) only the amount invested in the corporation
D) only the value of the assets of the corporation

Question

Quizplus · Accepted Answer

Stockholders in a corporation are only financially liable up to the amount they have invested in the corporation. This means if the corporation fails, they can lose their investment, but they are not personally responsible for the corporation's debts beyond that amount.

If the Corporation Fails, Stockholders Are Responsible for