Denise Has Been Asked to Join the Board of Directors

question 36

Multiple Choice

Denise has been asked to join the board of directors of Summit Corp,which carries on a software development business.She is attracted by the prestige and contacts she may gain as a result of joining the board but is concerned about her personal liability.Which of the following is TRUE?

• A)She has nothing to worry about because corporations are separate legal persons and so there is nothing that she would ever become liable for.
• B)She should worry about being held directly liable for the contracts the corporation enters into.
• C)She should worry about being vicariously liable for torts for which the corporation is responsible.
• D)She should worry about personal liability under regulatory and tax statutes.
• E)She does not need to worry so long as she obtains an indemnity from the corporation because an indemnity will always protect her from all risk.

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Definitions:

Psychological Adjustment

The process by which individuals mentally adapt to their life circumstances, which can involve coping strategies and changes in attitude or behavior.

Coping Styles

The methods or strategies that individuals use to manage stressful situations or challenges.

Terminal Illness

A disease or condition that is incurable and expected to lead to the patient's death within a short period of time.

Home Health Care

Medical and nursing services provided in a patient's home to treat an illness or injury.