1. If a corporation is unable to pay all of its debts, its shareholders:
have limited liability and are not legally responsible for the unpaid debts of the corporation.
are responsible for paying a percentage of the unpaid debts of the corporation that is equal to their percentage ownership of stock in the corporation.
are personally responsible for all of the unpaid debts of the corporation.
are required to sell their stock in the corporation and use the proceeds of the sales to pay the debts of the corporation.
1. A bond is:
an ownership interest in a corporation that gives the owner preferences with respect to the assets of the corporations and dividends paid by the corporation.
a debt instrument that allows the holder to convert the debt into a number of shares in the corporation having a value equal to the amount of the bond.
a debt instrument that requires the corporation to pay the holder a stated amount of interest for a stated period of time and then to pay the holder the amount of the bond.
an ownership interest in the corporation that allows the holder to vote in corporate elections.