The correct answer is C) none of the company's stockholders was legally responsible if the company went bankrupt.
The growth of business led to the development of a new type of business organization called the corporation. A characteristic of a corporation is "none of the company's stockholders was legally responsible if the company went bankrupt."
Corporations are owned by many stockholders that shares the risk, loses, but also the profits of the corporation. This corporation has a legal existence. It has limited liability. Its existence can be permanent. Among the most important corporations, we have Pepsico, General Motors, Walmart, Target, Hellet Packard, Marriot Hotels, among many others.
The other options of the question were A) each of the company's stockholders was legally responsible if the company went bankrupt. B) only the owner of the company was legally responsible if the company went bankrupt. D) the federal government was legally responsible if the company went bankrupt.
