Under What Circumstances Will a Court Hold Shareholders Personally Responsible

question 57

Multiple Choice

Under what circumstances will a court hold shareholders personally responsible for a 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:

Fear Authority

An apprehensive or anxious feeling towards individuals or institutions in positions of power or control.

Resilient

The ability to quickly recover from difficulties or adapt to challenging situations with strength.

Negative Consequences

Unfavorable or adverse outcomes that result from an action or decision.

Poverty

A situation in which people or groups do not have enough money and basic needs to maintain a minimum quality of life.