The shareholders liability is limited to the amount invested in the ownership shares. For example, if a

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The shareholders’ liability is limited to the amount invested in the ownership shares.

For example, if a shareholder purchased $1,000 in shares of a corporation, the potential loss would be $1,000. In a partnership, a general partner with a $1,000 contribution could lose the $1,000 plus any other indebtedness of the partnership.

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Corporate Finance

ISBN: 9780073105901

8th Edition

Authors: Jeffrey Jaffe, Bradford D Jordan

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