Steve is the president of a hunting lodge.He and the other lodge members incorporate a business to rent the lodge to other hunters and borrow money to make the lodge larger.If the members cannot repay the bank which of the following is liable to the bank?

Question

Quizplus · Accepted Answer

When a business is incorporated, it becomes a separate legal entity from its owners, which means the corporation itself is responsible for its debts and liabilities, not the individual owners or members (unless they have personally guaranteed the debt). Therefore, the bank would only be able to hold the corporation liable, not Steve or the other members personally.

Steve Is the President of a Hunting Lodge