If a Corporation Is Sued for Selling Unsafe Products and Loses

question 56

Multiple Choice

If a corporation is sued for selling unsafe products and loses the suit and is held liable, who or what is responsible for the debt?

• A) the shareholders as joint owners
• B) the corporation as a legally defined entity
• C) the managers of the corporation
• D) the shareholders owning 10 percent or more of the company

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Definitions:

Specialty Merchandise

Products that are distinguished by their unique characteristics, typically catering to specific interests or niche markets.

Wholesaler

An intermediary entity in the distribution channel that buys goods in large quantities from producers and sells them in smaller quantities to retailers or other businesses.

Performs

Refers to the actions or tasks completed by an individual, device, or system, typically measured against a standard or expectation.

Full-Line Wholesalers

Wholesalers who offer a wide range of products from many different manufacturers, providing retailers with varied merchandise under one roof.