Regarding Corporations,which Statement Follows the Principle of Limited Liability

question 50

Multiple Choice

Regarding corporations,which statement follows the principle of limited liability?

• A)a director who drives dangerously and causes an accident while on company business
• B)shareholders of a small,private company provide security or personal guarantees on loans made to their company
• C)a corporation is liable for its own debts
• D)the trustee in bankruptcy requires shareholders to repay corporate property received prior to bankruptcy
• E)a dividend is paid to a shareholder although the corporation make no profits-the shareholder is liable for the corporation's debt to the extent of the dividend

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Definitions:

Place Utility

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An American multinational technology company that develops, sells, repairs, and supports computers and related products and services.