Rose,Lily,and Fawn Were Shareholders in Style Co

question 72

Multiple Choice

Rose,Lily,and Fawn were shareholders in Style Co.,an incorporated company with limited liability.Each bought one-third of the shares in Style Co.for an aggregate payment of $15 000 each.The corporation borrowed $60 000 from the bank to finance its operations.The bank required personal guarantees from all shareholders for the full amount of the loan.Style Co.became insolvent,and the bank ultimately sued each of the shareholders to recover the $60 000.In receiving advice from their lawyer,what amount would he most likely indicate to be the maximum amount that could be recovered from any one of them?

• A) $0
• B) $15 000
• C) $20 000
• D) $60 000

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Definitions:

Sensory Management

A strategy that involves managing and manipulating the sensory experience of consumers to influence their perception and behavior towards a product or environment.

Retail Atmosphere

The overall aesthetic, mood, and feel of a retail environment that influences the consumer's shopping experience.

Retailing Mix

A combination of factors under a retailer's control which includes product assortment, price, place, promotion, personnel, and presentation, used to attract and satisfy customers.

Placards

A sign or notice for display in a public place.