As individual legal entities, corporations assume liability for their own debts, so the shareholders hold
A) only limited liability.
B) unlimited liability.
C) shared liability.
D) joint liability.

Question

Quizplus · Accepted Answer

Shareholders of a corporation hold only limited liability, meaning they are only liable up to the amount of their investment in the corporation and are not personally responsible for the corporation's debts.

As Individual Legal Entities, Corporations Assume Liability for Their Own