Question: [ Note: This question may have only one correct answer, or it may have more than one. Please select any and all of the correct
Note: This question may have only one correct answer, or it may have more than
one. Please select any and all of the correct answers from the choices below
Rising Starr Corporation's multiple shareholders include its founder, Patrice Starr.
To fund her extravagant lifestyle, Patrice has been embezzling from Rising Starr
for years, leaving it unable to pay its debts. If a lawsuit is filed, the corporation's
limited liability means that:
Patrice cannot lose her investment into Rising Starr.
Other shareholders cannot lose their investments into Rising Starr.
Rising Starr cannot lose more than the amount Patrice has invested into Rising
Star.
Patrice can be held liable for the full amount of the judgment, even if it exceeds the
total amount of her investment into Rising Starr.
Patrice cannot lose more than the amount she has invested into Rising Starr.
All shareholders can lose their investments into Rising Starr, and may also be
responsible for an additional designated percentage in excess of their investments if
necessary to satisfy the judgment.
Other shareholders cannot lose more than the amounts they have invested into
Rising Star.
Rising Starr cannot be held liable.
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