Under Which Circumstances Will a Court Hold the Shareholders Personally

question 23

Multiple Choice

Under which circumstances will a court hold the shareholders personally responsible for the corporation's actions?

• A) employee misrepresentation of a product
• B) fraud on customers
• C) employee negligence
• D) fraud on creditors

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Definitions:

Mass Media

Various forms of media technologies designed to reach a large audience via mass communication, including newspapers, television, and the Internet.

Adolescents

Individuals in the transitional stage of human development between childhood and adulthood, typically ranging from ages 10 to 19.

Personal Sphere

Relates to the aspects of an individual's life that are private and personal, as opposed to the public or shared with society at large.

Constantly Connected

Describes the state or condition of being continuously in touch or in communication with others, often through the use of digital technologies like smartphones and social networking sites.