Shareholders,as owners of the corporation,face unlimited liability for the corporation's debts,while bondholders,as creditors,may only lose the value of their investment if the company goes bankrupt.

Question

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Shareholders actually have limited liability, meaning they can only lose the value of their investment in the corporation if it goes bankrupt. Bondholders have a higher priority in receiving payment from the corporation's assets in the event of bankruptcy, so they are less likely to lose their investment.

Shareholders,as Owners of the Corporation,face Unlimited Liability for the Corporation's