When a Corporation Fails, the Maximum That Can Be Lost

question 78

Multiple Choice

When a corporation fails, the maximum that can be lost by an investor protected by limited liability is:

• A)The amount of the initial investment.
• B)The amount of the profit on the investment.
• C)The amount necessary to pay the corporation's debts.
• D)The amount of the investor's personal wealth.

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Definitions:

Indentured Servant

A worker bound by a contract to serve an employer for a specific period of time, typically in exchange for the cost of passage to a new country.

Planter

A landowner who operates a plantation, especially in the historical context of the agricultural economies in the Southern United States, where cash crops like cotton and tobacco were prominent.

Indentured Servants

Laborers who agreed to work for a specified number of years in exchange for transportation to the New World and, once they arrived, food, accommodation, and eventual freedom.

English Migrants

Individuals who move from England to another country for permanent residence or long-term stay.