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Jasmine Is the Sole Shareholder of FashionPlusYou Inc

Question 16

Multiple Choice

Jasmine is the sole shareholder of FashionPlusYou Inc.,which is planning to borrow $100 000 from the bank to finance a second store location.What is Jasmine's legal position should FashionPlusYou Inc.default on the loan?


A) She and the corporation are jointly liable for the debt.
B) She has no personal liability with respect to the debt.
C) She and the corporation are jointly and severally liable for the debt.
D) She can be personally sued by the bank but only if FashionPlusYou Inc.defaults on the loan.

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