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Seven College Friends Decide to Incorporate Their Business

Question 2

Multiple Choice

Seven college friends decide to incorporate their business. The business's financial position steadily deteriorates and it soon becomes unable to pay its debts. In total, the company owes its creditors $500,000 but has assets of only $10,000. Who or what can the creditors successfully recover against?


A) The shareholders of the company
B) the directors of the company.
C) both the company and its owners
D) the corporation
E) the managers of the company

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