Limited liability of shareholders is one of the advantages of incorporation. Generally, a shareholder is personally liable
A. For torts of the corporation although (s)he did not participate in them.
B. For crimes of the corporation although (s)he did not participate in them.
C. Only for his or her investment in the corporation.
D. For the corporation's debts.
Answer: C. Only for his or her investment in the corporation.
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BGL Enterprises, a global firm, operates a facility in Angola. Managers want to reduce the firm's vulnerability to political risk in Angola. All of the following actions would most likely accomplish this task except ________
A) reducing net investment in the subsidiary B) purchasing capital equipment outright C) buying inputs from local suppliers D) being a good corporate citizen
The following are examples of items that appear on a bank reconciliation
Classify each item as (a) an addition to the bank balance, (b) a subtraction from the bank balance, (c) an addition to the book balance, or (d) a subtraction from the book balance. 1. NSF check 2. Deposits in transit 3. Interest revenue on checking account 4. Bank error - the bank credited the company's account for a deposit made by another customer 5. EFT rent collection 6. Service charge 7. Book error - the company credited cash for $100 when the correct amount was $1,000 8. Outstanding checks 9. Bank collection of a note receivable on behalf of the company