Business

Carmelo Peck

8 February, 00:39

If a public corporation goes bankrupt and does not have enough assets to pay off all creditors:

a. the stockholders receive any dividends due before the other creditors are paid

b. the stockholders cannot lose more than their investment.

c. the stockholders are personally liable for the balance.

d. the fact that stockholders are residual claimants means they may have to pay in additional capital to cover the obligations.

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