Answered

A corporation is sued because of a defective product and must pay a settlement. What will be the liability to
shareholders?
A
Individual shareholders will have to pay a percentage of the settlement,
B
Each shareholder will lose some of the stock they own.
C
There is no liability for shareholders.
D
Shareholders will lose their business reputations.

Answer :

Answer:

c

Explanation:

A corporation is a legal body created to restrict the liabilities of its stockholders. In most cases, stockholders are not individually accountable for the corporation's debts.

Hence, the correct option is C. "There is no liability for shareholders."

Each corporation is a distinct legal entity in its own right. It must enter into contracts and sue and be sued in its own name. While there is an exception to this rule where a party is able to pierce the company veil through alter ego.

To know more about shareholders, refer to the link:

https://brainly.com/question/22816198

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