Question

an individual invested in a company by purchasing 1,000 shares of common stock. the company has, unfortunately, gone bankrupt. this investor a) is guaranteed to receive back all that was invested and is not liable for any corporate debts that cannot be satisfied during the dissolution process. b) may lose all that was invested but is not liable for any corporate debts that cannot be satisfied during the dissolution process. c) is guaranteed to receive back all that was invested but may have to liquidate personal assets to satisfy any debts of the corporation. d) may lose all that was invested and can be found to be liable for any corporate debts that cannot be satisfied during the dissolution process.

Answer 1

Based on the fact that the individual invested in a company that has gone bankrupt, the investor b) may lose all that was invested but is not liable for any corporate debts that cannot be satisfied during the dissolution process.

What happens to investors in bankrupt companies?

When you invest in a company by buying shares of common stock, this company is most likely a Public limited company. What this means is that if the company goes bankrupt, the assets of the investor are safe because their ownership in the company is limited to the shares that they invested.

By law, the bankrupt company would have to use the remaining resources that it has to settle the creditors that it owes. This means that there is a chance that the investor will not get anything out of the business but at least they will not be liable for any corporate debts.

Find out more on bankruptcy at brainly.com/question/3366657

#SPJ1