Which of the Following Statements Is True of the Liability

question 31

Multiple Choice

Which of the following statements is true of the liability of investors in a corporation?

• A) Majority investors are personally liable, whereas minority investors are not personally liable.
• B) Investors have personal liability for the business transactions in corporations.
• C) Investor's liability is limited to the amount invested in the corporation.
• D) Investors are personally liable for transactions, whereas their property is not liable.
• E) Investors' property is liable for the business transactions but investors are not personally liable.

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Definitions:

Robert Merton

An American sociologist known for his contributions to social theory, sociology of science, and the study of social structure and anomie.

Manifest Function

Clearly recognized and intended consequences of any social pattern or activity within a society.

Anticipated Outcome

The expected result or consequence of an action, process, or situation, often based on prior knowledge or hypotheses.

Dysfunction

The negative consequence of a social process that disrupts the operation of a system or organization.