Shareholders of a corporation:

Question

Quizplus · Accepted Answer

Shareholders of a corporation have limited liability for the corporation's debts, which means they are only responsible for the amount of money they have invested in the company and are not personally liable for any debts the corporation may have beyond that amount. This is one of the main advantages of investing in a corporation, as it allows shareholders to limit their risks and protect their personal assets. Option B is incorrect, as shareholders do not have unlimited liability for the corporation's debts. Option C is also incorrect, as shareholders are not personally liable for the actions of other stockholders. Finally, option D is incorrect, as shareholders are required to pay tax on the dividends they receive from the corporation.

Shareholders of a Corporation