Regarding Corporations,which Statement Follows the Principle of Limited Liability

question 44

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.