Shareholders of a Corporation Are Personally Liable for the Debts

question 77

True/False

Shareholders of a corporation are personally liable for the debts and obligations of the corporation.

---

Definitions:

New Reserves

Additional funds or assets that financial institutions or countries set aside to meet future liabilities or unforeseen needs.

Excess Reserves

The amount of reserves that banks hold over the minimum required by the central bank to back deposits.

Money Creation

The process by which the money supply of a country is increased through the activities of its central bank and commercial banking system.

Banking System

The network of banks and financial institutions that provide banking services, including deposits, loans, and currency exchange.