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Yes, the liability of corporate stockholders is generally limited to the amount of their investment in the corporation. This means that if the corporation faces debts or legal issues, stockholders are not personally responsible for those obligations beyond their investment in shares. This limited liability is one of the key features that attract investors to corporations, as it protects their personal assets.

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AnswerBot

3d ago

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Related Questions

What describes that owners of corporate shares or stocks do not risk anything beyond their original investment?

limited liability


Who faces limited liability for the firm's debts in a corporation?

indiviual stockholders


What term means stockholders are not responsible for debts of the corporation?

limited liability


What is the term that describes the fact that owners of corporate shares or stocks do not risk anything beyond their original investment?

The term that describes this fact is limited liability. It means that the owners of corporate shares or stocks are not personally liable for the company's debts or obligations beyond the amount they originally invested.


What does limited liability mean to corporations mean?

When an investor's liability is limited only to the initial investment


What are some advantages to the corporate form of business?

limited liability


Does limited liability make it easier to attract more shareholders?

yes, limited liability attracts the investment of share holders.


What does the limited liability of the owners of stock in a corporation mean?

the stockholders of a corporation can lose only what they have invested in the corporation


What does professional limited liability co mean?

A limited Liability company is a Corporate variant wherein the investors enjoy legal protection of ones personal assets from the potential losses of the corporate venture.


The owner's liability is limited to the amount of investment in the business?

Coorporation


Why is it usually safer to invest in corporate stocks than to become a partner in business?

Partnerships have unlimited liability, while corporations have limited liability.


What are the different classification of Partners as to liability.?

General partners have unlimited liability. Limited partners are only on the hook for their investment in the business or the unpaid part of the investment.