If a corporation fails,the shareholders are all individually liable.

Question

Quizplus · Accepted Answer

The main advantage of forming a corporation is that the shareholders are not personally liable for the debts and obligations of the corporation. The liability of the shareholders is limited to the amount they have invested in the company. Therefore, if a corporation fails, the shareholders are not individually liable for the debts and obligations of the corporation beyond the amount they have invested.

If a Corporation Fails,the Shareholders Are All Individually Liable