Examlex

Solved

When a Personal Guarantee Has Been Signed by a Shareholder

question 124

True/False

When a personal guarantee has been signed by a shareholder, the creditor can demand payment from that shareholder despite the separate legal entity nature of the corporation.


Definitions:

Perfectly Competitive

A market structure where many firms offer products that are similar and entry and exit from the market are easy, leading to price being determined by supply and demand.

AVC

Average Variable Cost, calculated by dividing total variable costs by the quantity of output produced.

Short-Run Cost Curve

A curve that shows how production costs change as output is increased or decreased, assuming some inputs are fixed.

Profit Maximizing

The process of adjusting production and sale strategies to achieve the maximum possible profit.

Related Questions