A After years of working in a hardware store, James takes his savings and invests in opening his own storo, James' Tools. After a year in business, James' Tools is not profiting and is in debt. In fact, the store
owes money to his supplier, Hammers and Nails, a firm owned by shareholders. Because James has been unable to pay his supplier, Hammers and Nails is also in debt
Which of the following statements is correch
Both Hammers and Nails and James' Tools have unlimited liability and are personally responsible to pay off the debt.
Both Hammers and Nails and James' Tools have limited liability and are not personally responsible to pay off the debt.
James is personally responsible to pay the debts of the company, whereas the stakeholders of the Hammers and Nails are not
The stakeholders of Hammers and Nails may have to liquidate personal assets to pay off the debt, whereas James' personal assets aren't at risk
B
С
D