Which entity is liable for a corporation's debts?

Question

Quizplus · Accepted Answer

The corporation itself is a separate legal entity from its stockholders and directors. Therefore, the corporation is liable for its own debts and legal obligations. The stockholders and directors are not personally responsible for the corporation's debts unless they have acted in violation of their duty to the corporation or engaged in fraudulent or illegal activities. The president of a corporation may also not be personally liable unless they have engaged in misconduct or negligence that led to the corporation's debts.

Which Entity Is Liable for a Corporation's Debts