Which of the Following Statements Is Incorrect

question 40

Multiple Choice

Which of the following statements is incorrect?

• A) A corporation may file suit in its own name without the principals filing suit.
• B) A corporation may form a contract in its own name without the principals guaranteeing the contract.
• C) A corporation can be sued without the principals being sued.
• D) A corporation may not incur obligations separate from those of its principals.

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Definitions:

Objection

A formal expression or statement of disapproval or disagreement with something, often used in legal contexts to dispute admissibility of evidence or procedures.

Venue

The geographical location or jurisdiction where a legal case is heard.

Hearsay

Evidence based on the reports of others rather than on a witness's own knowledge, typically not admissible in court.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.