Which of the following is true about shareholders?
a. If a company is unable to pay its debts, it seeks protection from creditors in bankruptcy court, in which case shareholders lose the value of their stock.
b. Shareholders’ personal assets, such as their own homes or bank accounts, are liable to creditors.
c. It’s important to note that shareholders do not own any stock in the company, but enjoy legal rights to the company’s assets.
d. Shareholders should be human beings and not corporate entities, such as partnerships or corporations.
e. In a closely held corporation, the body of shareholders tends to be large.