The Retail Card and Gift Shop Chain That Heidi Started

question 129

Multiple Choice

The retail card and gift shop chain that Heidi started has been incorporated.Which of the following best describes the limited liability that Heidi has as the primary stockholder in this corporation?

• A) Heidi has no responsibility if the business fails and will still be able to get her initial investment back.
• B) Heidi may have to give up her car and house if the corporation fails in order to cover the debts of the corporation.
• C) The other stockholders will be able to seize Heidi's personal money but not her primary residence in the event that the business fails.
• D) Heidi's personal assets will be protected in the event that the corporation fails, although she could lose her entire investment.
• E) Heidi will only be liable for losses that develop from decisions she made about the daily business operations.

---

Definitions:

Chi-square Statistics

A statistical measure used to analyze the differences between categorical variables in a contingency table.

Degrees of Freedom

The amount of separate values or quantities that can be attributed to a statistical distribution.

P Value

A statistical measure that helps determine the significance of results, indicating the probability of observing the results if the null hypothesis is true.

Null Hypothesis

An initial hypothesis that assumes no association or difference between groups or variables, tested against an alternative hypothesis.