Regarding the Liability of Simone,if Any,for Purchasing the Stock at Below

question 66

Multiple Choice

Regarding the liability of Simone,if any,for purchasing the stock at below its fair market value,which of the following is true?

• A)She is liable for double the stated corporate value of the stock in addition to any price she already paid.
• B)She is liable for the stated corporate value of the stock in addition to any price she already paid.
• C)She is liable for paying the difference between the price she paid for the shares and the stated corporate value of the shares.
• D)She is liable for paying the difference between the price she paid for the shares and the stated corporate value of the shares plus a $10,000 penalty.
• E)If the board wanted to offer it to her,they had that right,and there is no consequence to Simone.

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Definitions:

Day-To-Day Activities

The regular, everyday tasks or operations that are essential to the functioning of a business or individual.

Unlimited Liability

A legal structure in which the business owners are personally responsible for all of the company's debts and obligations.

General Partnership

A partnership that involves a complete sharing in both the management and the liability of the business.