Four Years Ago,Ben Ratzi Incorporated a Corporation and Became the Sole

question 172

Multiple Choice

Four years ago,Ben Ratzi incorporated a corporation and became the sole shareholder,director,and officer.He loaned the corporation $10 000 and took a debenture from the corporation as security for repayment of the loan.The corporation prospered.Last year,your brother began supplying the corporation with office supplies.He was paid at the end of each month for supplies delivered during that month.For the last six months,however,he has not been paid.He learned that other suppliers had not been paid either because sales dropped drastically,apparently due to Ratzi's harsh management style,which has upset the entire staff.Which of the following is true?

• A)If Ratzi dies,his corporation would automatically die too,and there wouldn't be any person to sue.
• B)Your brother has no claim against the corporation because it has limited liability.
• C)If this corporation were placed into bankruptcy,Ratzi would be in a better position than your brother for receiving proceeds realized from the sale of the assets of the corporation.
• D)Your brother could take an action under statutory "relief-from-oppression" provisions.
• E)If your brother decided to sue for the debt,he could sue Ratzi because he was the sole shareholder and his management style caused all of the trouble.

---

Definitions:

Baseline Values

Initial measurements or data points used as a reference for future comparisons in studies or medical evaluations.

Supine

A position of lying on the back with the face up, often used in medical examinations.

Urine Specimen

A sample of urine collected for medical testing or analysis.

Physical Examination

A process where a medical professional investigates the body of a patient for signs of disease.