Typically Individual Stockholders Are Not Held Responsible for the Actions

question 10

Multiple Choice

Typically individual stockholders are not held responsible for the actions of a corporation.Exceptions usually relate to comingling of funds,underinsuring,or similar actions by the corporate leadership.This is called:

• A)Risking liability
• B)Piercing the corporate veil
• C)The privilege of the stockholders
• D)Free market trading of stocks

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Definitions:

Law

A system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Ethical

Pertaining to or dealing with morals, the principles of morality pertaining to right and wrong in conduct.

Ethical Decision Makers

Individuals who prioritize ethical principles and values in deciding upon actions within a professional or organizational context.

Test

An assessment or examination to measure a person's knowledge, skill, or physical fitness, or the performance of an object or substance.