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?
Answer
A
Each of the company’s stockholders was legally responsible if the company went bankrupt.
B
Only the owner of the company was legally responsible if the company went bankrupt.
C
None of the company’s stockholders was legally responsible if the company went bankrupt.
D
The federal government was legally responsible if the company went bankrupt.