The correct answer is C) a shareholder is responsible for a corporations debts.
Explanation:
If the company fails, its shareholders aren't held personally responsible for the failure, nor will they have to pay off the debt from their own assets. The debts will be paid from the company's assets. The only instance when a shareholder is held responsible is if he or she signed a personal guarantee for a loan of some kind. But that's the only exception to the rule.
