The liability of shareholders is
A) similar to the liability of the owners of a partnership.
B) similar to the liability of the owner of a proprietorship.
C) equal to an amount sufficient to satisfy all creditors.
D) limited to their property or service invested in the corporation.

Question

Quizplus · Accepted Answer

Shareholders' liability is limited to the amount of their investment in the corporation. This means that their personal assets are not at risk if the corporation incurs debts or liabilities. This is one of the main advantages of investing in a corporation as opposed to a partnership or proprietorship, where the owners can be personally liable for the business's debts.

The Liability of Shareholders Is