Asked by
Michelle Boileau
on Nov 21, 2024
Verified
Preetha's attempt to hold the shareholders primarily liable for her debt is likely to have what result?
A) She will likely be successful.
B) She will be successful only if XYZ Corporation proceeds to file for bankruptcy protection.
C) She will be successful only if XYZ Corporation is insolvent and remains so for at least six months.
D) She will be successful only if XYZ Corporation is insolvent and remains so for at least one year.
E) She will likely be unsuccessful.
Shareholders
Individuals or entities that own shares in a corporation, giving them partial ownership and typically the right to vote on corporate matters.
Debt
Debt is an amount of money borrowed by one party from another, typically with the arrangement that it will be paid back, often with interest.
- Implement the principles of corporate liability and ensure the safeguarding of personal liability during the establishment of a business.
- Comprehend the legal ramifications of incorrect incorporation, and the theories related to de facto and de jure corporations.
Verified Answer
SP
Learning Objectives
- Implement the principles of corporate liability and ensure the safeguarding of personal liability during the establishment of a business.
- Comprehend the legal ramifications of incorrect incorporation, and the theories related to de facto and de jure corporations.