Question

The amount paid for stock is the most a shareholder can lose in the corporate form of ownership.

a. True
b. False

Answer 1

True

Step-by-step explanation:

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Answer 2

This statement is true. The amount the shareholder has paid for the stock he owns is the amount of potential loss he can incur as a result of being an owner in a corporation. The creditor of the company cannot run to the personal properties of each shareholder. This condition makes the corporation differ from partnership.