You purchase 50 of the 50,000 issued shares of Trainco Ltd, for $100. The company goes bankrupt. Creditors claim $5,000,000. How much is your liability?
A) All you lose is the $100 investment you made
B) $5,000
C) $5,000,000
D) It depends on whether the creditors decide to sue you.
E) Zero, since your investment is a first claim on the assets of the corporation.
A
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What will be an ideal response?
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