the growth of business led to the development of a new type of business organization called the corporation…

the growth of business led to the development of a new type of business organization called the corporation. which of the following was a characteristic of a corporation?\no each of the company’s stockholders was legally responsible if the company went bankrupt.\no only the owner of the company was legally responsible if the company went bankrupt.\no none of the company’s stockholders was legally responsible if the company went bankrupt.\no the federal government was legally responsible if the company went bankrupt.

the growth of business led to the development of a new type of business organization called the corporation. which of the following was a characteristic of a corporation?\no each of the company’s stockholders was legally responsible if the company went bankrupt.\no only the owner of the company was legally responsible if the company went bankrupt.\no none of the company’s stockholders was legally responsible if the company went bankrupt.\no the federal government was legally responsible if the company went bankrupt.

Answer

Brief Explanations:

In a corporation, stockholders have limited liability. This means their personal assets are generally not at - risk if the corporation goes bankrupt. They are not individually legally responsible for the corporation's debts beyond their investment in the stock.

Answer:

None of the company’s stockholders was legally responsible if the company went bankrupt.