John own shares worth an estimated $1 million in the LPL corporation.In addition, John has personal assets worth another $2 million.LPL becomes insolvent, with debts exceeding assets by $15 million.By what amount will John's personal wealth will decline?

Question

Quizplus · Accepted Answer

John's personal wealth will decline by the value of his shares in LPL, which is $1 million, as shareholders are typically only liable up to the amount they invested in the company. His personal assets are not affected by the company's insolvency.

John Own Shares Worth an Estimated $1 Million in the LPL