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Lin Barnett paid $153,000 for 2,500 shares in Barnett Inc., a company for which she is the managing director. She also personally guaranteed a bank
Lin Barnett paid $153,000 for 2,500 shares in Barnett Inc., a company for which she is the managing director. She also personally guaranteed a bank loan to Barnett Inc. in the amount of $79,000. If Barnett Inc. goes bankrupt, which of the following statements is correct? a. Lin's financial risk is limited to $153,000 b. Lin's financial risk is unlimited c. Lin's financial risk is limited to $79,000 d. Lin's financial risk is limited to $$232,000
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