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?\neach of the company’s stockholders was legally responsible if the company went bankrupt.\nonly the owner of the company was legally responsible if the company went bankrupt.\nnone of the company’s stockholders was legally responsible if the company went bankrupt.\nthe 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?\neach of the company’s stockholders was legally responsible if the company went bankrupt.\nonly the owner of the company was legally responsible if the company went bankrupt.\nnone of the company’s stockholders was legally responsible if the company went bankrupt.\nthe federal government was legally responsible if the company went bankrupt.

Answer

Brief Explanations:

One of the key features of a corporation is limited liability. Stock - holders' liability is limited to their investment in the company. So, in case of bankruptcy, they are not personally liable for the company's debts.

Answer:

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