What Is the Most Likely Reason,from a Financial Liability Perspective,for

question 35

Multiple Choice

What is the most likely reason,from a financial liability perspective,for a corporation to be viewed as the most risk-aversive form of business entity?

• A) It forms a distinct legal entity,liable for its own obligations.
• B) Any entity that deals with a corporation may demand personal guarantees.
• C) It shields directors from negligent acts of management.
• D) It provides limited liability to the corporation's directors.

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Definitions:

Traits

Enduring characteristics or tendencies that define an individual's behavior, thought patterns, and emotional responses.

Allele

A particular variant, or form, of a gene; most genes have two or more alleles.

Gene

A basic unit of heredity made up of DNA that contains the instructions needed to develop and direct the activities of cells in an organism.