Carter is a stockholder in ExtremeTrax, Inc., a C corporation that designs and manufactures amusement park roller coasters. The company recently lost a major court decision and is being forced into bankruptcy. In fact, the damages being awarded are so large that, even if all company assets are sold and the proceeds are used to pay its debts, ExtremeTrax is likely to still owe money to its creditors. If ExtremeTrax goes bankrupt, Carter and the other stockholders will
A. be personally responsible for all remaining debts.
B. automatically qualify for federal reimbursement for any losses suffered by the firm.
C. be entitled to full reimbursement of any investment losses.
D. lose their investment but nothing else.
Answer: D
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