Ask Question
23 November, 21:39

Suppose you own a proprietorship that is in serious financial difficulty. The assets of the company are $100,000, but liabilities are $175,000. You also have, however, stock in General Motors worth $200,000. If you file bankruptcy, what amount of personal assets do you stand to lose? a. $100,000b. $75,000c. $200,000d. $275,000e. $375,000

+2
Answers (1)
  1. 23 November, 22:08
    0
    b. $75,000

    Explanation:

    Since assets are $100,000 and liabilities are $175,000, the owner has a deficit to cover of $75,000 ($175,000-$100,000). The deficit will have to be recovered from the owner's stock in General Motors in order to settle the outstanding liabilities. Therefore, the owner will stand to lose the $75,000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose you own a proprietorship that is in serious financial difficulty. The assets of the company are $100,000, but liabilities are ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers