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Which of the Following Statements Most Accurately Describes the Legal

Question 20

Multiple Choice

Which of the following statements most accurately describes the legal principle established in the case of Solomon v. Solomon?


A) In the case of fraud, the owners of a company may be personally liable for all debts incurred by it.
B) Directors must act in good faith and exercise their powers in the best interests of the company
C) Directors owe fiduciary duties to the company
D) A company has a separate legal existence from its owners
E) A company may survive the death of its members

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