Directors Have a Personal Liability for All of the Following

question 11

Multiple Choice

Directors have a personal liability for all of the following except

• A) losses from a corporate ultra vires act.
• B) failure to make filings under corporate legislation.
• C) employee wages outstanding on bankruptcy.
• D) dividends that impair the corporate capital.
• E) losses arising from a good faith business decision.

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Definitions:

Encourage Consumption

Measures or strategies aimed at increasing consumer spending and demand for goods and services.

Federal Income Tax

A tax levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Ability-To-Pay Principle

A taxation principle that suggests taxes should be levied according to an individual's or entity's ability to pay, favoring a more equitable distribution of the tax burden.

U.S. Income Tax

A tax imposed by the U.S. government on the income generated by businesses and individuals within its jurisdiction.