Which of the following may result in a loss of limited liability in a corporation?
A) employee misrepresentation of a product
B) fraud on customers
C) employee negligence
D) fraud on creditors

Question

Quizplus · Accepted Answer

Fraud on creditors can result in a loss of limited liability in a corporation because it is a breach of the duty of loyalty that directors and officers owe to the corporation and its creditors.

Which of the Following May Result in a Loss of Limited