The Limited Liability of Stockholders in a Corporation Means That

Multiple Choice

The limited liability of stockholders in a corporation means that ________.

A) the company's creditors cannot seek payment from the stockholders as individuals if the corporation cannot pay its debt
B) the company's creditors cannot receive more than the face value of their debt
C) the short-term creditors have to be paid before the long-term creditors
D) the long-term creditors have to be paid before the short-term creditors