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? each of the companys stockholders was legally responsible if the company went bankrupt. only the owner of the company was legally responsible if the company went bankrupt. none of the companys stockholders was legally responsible if the company went bankrupt. 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? each of the companys stockholders was legally responsible if the company went bankrupt. only the owner of the company was legally responsible if the company went bankrupt. none of the companys stockholders was legally responsible if the company went bankrupt. the federal government was legally responsible if the company went bankrupt.

Answer

Answer:

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

Brief Explanation:

In a corporation, stockholders have limited liability. Their personal assets are generally not at - risk in case of corporate bankruptcy. They are only liable up to the amount they have invested in the company's stock.