Answered

who faces limited liability, in the form of money, for the firm's debts in a corporation?


the corporation, but not its owners

individual stockholders

no one, only general liability can be faced

the chief executive officer

Verified Answer :

MyOwnKindOfAverage

The individual stockholders face limited liability in the form of money

The answer is: Individual stockholders

When a business adopt a corporation form, the personal assets of the stockholders cannot be touched by liabilities that might occurs if the business is failing.

The liquidation process is limited to the assets that exist in company. After all assets are fully liquidated but still cant fulfill all the liabilities, the creditors are forced to consider the remaining amount as a loss.

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