Personal Liability for a Corporate Board Member Means That

question 72

Multiple Choice

Personal liability for a corporate board member means that

• A) directors have a legal obligation to pay all debts of the corporation.
• B) directors have a legal obligation to pay all debts of the corporation if the company cannot.
• C) directors may be sued for breach of fiduciary duty.
• D) directors have a personal responsibility to the shareholders.

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Definitions:

Facilities

Physical buildings and structures that are equipped for a particular purpose, such as production, research, or services.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Raw Materials

The basic substances or components that are processed or combined to manufacture finished goods.

Work in Process

Inventory that includes all items that are currently being manufactured but are not yet completed products.