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Zarrin [17]
3 years ago
8

What happens to the stockholders when a corporation files for bankruptcy?a. The stockholders must also file for bankruptcyb. the

owners can force the board of directors to pay the debtc. the owners can lose only the money they have investedd. the owners can avoid paying the debt by forming a limited liability corporation
Business
2 answers:
4vir4ik [10]3 years ago
8 0

Answer:

the owners can lose only the money they have invested

Explanation:

Shareholders have a limited responsibility up to the amount they have invested. Therefore, if a company files for bankruptcy the maximum amount they can lose is the amount they have invested in the company.

Marina86 [1]3 years ago
4 0

Answer & Explanation:

An important element of a corporation is limited liability, which means that shareholders may take part in the profits through dividends and stock appreciation but are not personally liable for the company's debts. Corporations are not always for profit.

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Stella [2.4K]

Answer:

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