Shareholders Are Not Personally Liable for the Debts of a Corporation

question 32

True/False

Shareholders are not personally liable for the debts of a corporation.

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Definitions:

Nuisance Theory

Nuisance theory refers to a legal principle used to address harm or annoyance caused by one party to another, which can involve both private nuisances between individuals and public nuisances affecting the community.

Strict Liability Theory

A legal doctrine holding an individual or entity liable for damages or harm, regardless of fault or intent.

Environmental Compliance Audits

Systematic assessments that evaluate how well a company or organization adheres to environmental laws and regulations.

Superfund

A program established to fund the cleanup of sites contaminated with hazardous substances and pollutants.