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To: Sun

When a privately held corporation borrows money, the loan is guaranteed by the owner of said corporation and that owner has their signature on it.

Trump is not being honest in his statement he did not file bankruptcy personally when he owns the corporation. He is the corporation.

A publicly held corporation is a different story, but he is not one.


48 posted on 02/01/2016 2:32:30 AM PST by biff
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To: biff
When a privately held corporation borrows money, the loan is guaranteed by the owner of said corporation and that owner has their signature on it.

That only is true if it is a sub-Chapter S corporation.

There are thousands of private companies where the principals have no personal liability. In Western PA, two major retail outlets, both with sales over $5 BILLION, Giant Eagle and Sheetz are both private companies and the major share holders, are not liable for the corporate debt.

Either of these companies could declare bankruptcy and no owner/shareholder would lose a personal dime.

69 posted on 02/01/2016 3:25:51 AM PST by USS Alaska (Exterminate the terrorist savages, everywhere.)
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To: biff
When a privately held corporation borrows money, the loan is guaranteed by the owner of said corporation and that owner has their signature on it.

In many cases, that is not true. It depends upon the circumstances, including the amount of corporate assets that are available in case of default, the borrower's negotiating skills, and how bad the lender wants to do the deal.

Trump is not being honest in his statement he did not file bankruptcy personally when he owns the corporation. He is the corporation.

A privately held corporation is separate and distinct from its shareholders if formalities are observed. To insist otherwise shows a vast ignorance about business law.

And before I get flamed, note that I don't care whether Trump or Cruz is the nominee. I'll vote for either. Just hate to see FReepers lie to promote their candidates of choice.



98 posted on 02/01/2016 4:21:46 AM PST by peyton randolph (Crossing the Concern Troll Union's picket line)
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To: biff
And you went to what business school? Law school?

Laughable.

237 posted on 02/01/2016 9:45:53 AM PST by Albion Wilde (Who can actually defeat the Democrats in 2016? -- the most important thing about all candidates.)
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