A Creditor of an Insolvent Corporation Is Unable to Seek

question 51

Multiple Choice

A creditor of an insolvent corporation is unable to seek redress for its losses from the company's shareholders.How will the law discern this outcome?

• A) as limiting the perpetual existence of a corporate entity
• B) as eminently unjust to the creditor
• C) as just if the creditor was also a shareholder of the corporation
• D) as perfectly legitimate and eminently just

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Definitions:

Reciprocity

A social exchange principle where benefits are returned by those who receive them, fostering mutual cooperation.

Vampire Bats

Species of bats known for their unique feeding habit of consuming blood from other animals.

Communal Roost

A shared resting or sleeping location used by a group of animals, typically for protection and social purposes.

Reciprocity

A social interaction principle where an action is repaid with a corresponding one, beneficial in the formation and maintenance of social bonds.