Moe, Larry, and Carl form a corporation, Stooges Ltd. They are the only shareholders. They die together in a plane crash. David Addison, a creditor of Stooges Ltd., brings an action against the corporation, but does not obtain judgment until after the three shareholders die. He is advised by his lawyer that Stooges Ltd. is now insolvent. Which of the following is true?
A) Addison may enforce his judgment against the estates of Moe, Larry, and Carl, or any of them.
B) Addison may bring a fresh action against estates of Moe, Larry, and Carl, or any of them.
C) Addison is stuck with his worthless judgment against the corporation.
D) Stooges Ltd. ceased to exist upon the death of its only shareholders.
E) Both A and D
Correct Answer:
Verified
Q21: Which of the following is NOT considered
Q22: A bond is:
A)The equivalent of a charge
Q23: Which of the following is TRUE?
A)The shareholder
Q24: Dirk Davis purchases a piece of industrial
Q25: What is the right of a shareholder
Q27: The most common document used to incorporate
Q28: The term that refers to the way
Q29: If a corporation issues a security that
Q30: If the assets in an insolvent business
Q31: What is issued share capital?
A)The number of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents