Which of the Following Was One of the Issues That

question 9

Multiple Choice

Which of the following was one of the issues that was resolved by the decision in Salomon v.Salomon Ltd.,[1897]A.C.22 (H.L.) ?

• A) whether incorporation can be undertaken to limit risk of business bankruptcy
• B) whether shareholders are prohibited from becoming highly protected creditors of the company
• C) whether companies with few shareholders could be recognized as separate legal entities
• D) whether shareholders are totally responsible for their own as well as the entity's obligations

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Definitions:

American Society

The societal structure and cultural norms of the United States, characterized by its diverse population and values such as freedom and democracy.

Robert La Follette

An American politician and the founder of the Progressive movement, he served as a member of the House of Representatives, the Governor of Wisconsin, and a U.S. Senator, advocating for democratic reforms and the regulation of big business.

Railroad Industry

A sector focused on the construction, operation, and management of railways, which are critical for the transportation of goods and passengers.

Corporations

Organized entities recognized by law as having a distinct identity, separate from their owners, and authorized to operate a business.