Discuss the importance of the separate legal identity of juridical entities in business
What will be an ideal response?
Corporations and certain other companies are juridical entities that have legal identities separate from those of their owners. This separate legal identity has several important consequences. First, it means that the liability of the owners is limited to their investment in their company. Thus, a company's owners are usually not required to pay the company's obligations from their personal estates. Second, it means that rights and benefits accruing to the company belong to the company, not to its owners. In other words, only a company may lay claim to its own property. Additionally, for some
companies (i.e., most kinds of corporations), the owners are neither managers nor agents nor representatives of the company; they may not, on their own, make decisions on behalf of the company, or commit the company to perform contractually, or commit crimes, torts, or delicts that would impose liability on the company.
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The insured carries a personal auto policy providing a bodily injury limit of $50,000 each person with a per accident injury limit of $100,000. He injures two occupants in another vehicle. Their injuries total $60,000 for Mr. Jones and $50,000 for Mrs. Jones. The insurance company spent $40,000 in defense and investigation costs. How much will the insured's policy pay?
a. $50,000 b. $100,000 c. $140,000 d. $110,000
According to the text, which of the following statements about the relative amount of time spent in the selling process for different types of salespeople is true?
a. A traditional salesperson would spend a lot of time following up the sale. b. A consultative salesperson would spend a lot of time closing the sale. c. A consultative salesperson would spend a lot of time generating leads. d. A relationship salesperson would spend a lot of time qualifying leads.