If a Corporation Becomes Insolvent, Creditors Can Claim the Assets

question 176

True/False

If a corporation becomes insolvent, creditors can claim the assets of the individual owners.

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Definitions:

Specialized

Relating to a particular area of expertise or designed for a specific purpose or use.

Variety of Tasks

A range of different activities or duties that a person or machine may be required to undertake.

Personal Liability

An individual’s personal responsibility for debts or obligations. The owners of sole proprietorships and partnerships are personally liable for the debts and obligations incurred by their businesses. If their firms go bankrupt or cannot meet debts, the owners will be personally responsible for the debts.

Personal Asset

An item of value owned by an individual, including tangible assets like real estate or cars, and intangible assets like stocks or intellectual property.