Karissa Is 25% Owner in a Corporation That Builds Custom

question 27

Multiple Choice

Karissa is 25% owner in a corporation that builds custom machinery. Last year the corporation suffered due to intense competition. After losing $1,000,000 last year, the business is shutting its doors. The business has unpaid debts of $9,000,000. What is Karissa's personal liability?

• A) $0
• B) $1,000,000
• C) $9,000,000
• D) $10,000,000

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Definitions:

Proxy Solicitations

The process of gathering votes or consents from shareholders by a party seeking to influence decisions or actions within a company, often related to corporate governance issues.

Proxy Statement

A document that a publicly traded company is required to send to its shareholders, containing information necessary to make informed decisions at shareholder meetings.

Preliminary Proxy Statements

Initial documents distributed to shareholders that outline matters to be voted on during a corporation's upcoming meeting.

SEC

Refers to the Securities and Exchange Commission, a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.