Stockholders of a corporation are not personally liable for the corporation's debt.

Question

Quizplus · Accepted Answer

This is one of the key benefits of incorporating a business. The corporation is considered a separate legal entity, which means that its debts and obligations are separate from those of its stockholders or owners. This provides a level of protection for stockholders, who are only liable for the amount of money they have invested in the corporation.

Stockholders of a Corporation Are Not Personally Liable for the Corporation's