in the event of bankruptcy owners of joint-stock companies lose?

Assessment: WAEC SSCE - Economics - 2018 (Objective) Subject: Economics

Question 1 Report

in the event of bankruptcy owners of joint-stock companies lose?

Answer Details
In the event of bankruptcy, owners of joint-stock companies lose only the capital invested. A joint-stock company is a type of business organization where the ownership is divided into shares of stock, and the liability of the owners is limited to the amount of capital they have invested. This means that if the company goes bankrupt and cannot pay its debts, the owners of the company (the shareholders) will lose only the amount of money they have invested in the company's shares. They will not be personally liable for the company's debts or lose any of their private properties. However, if the company's assets are not sufficient to cover its debts, the shareholders may not receive any dividends, and their shares may become worthless. Therefore, the correct answer is only the capital invested.

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