Edith is the only shareholder and director of Edie Inc.,a corporation incorporated by Edie two years ago.Edie is also the president of Edie Inc.Edie Inc.has no employees and no assets.Edie will be personally liable to creditors of Edie Inc.

Question

Quizplus · Accepted Answer

As a general rule, shareholders and directors of a corporation are not personally liable for the debts or obligations of the corporation. The corporation is considered a separate legal entity, and liability is limited to the assets owned by the corporation.

Edith Is the Only Shareholder and Director of Edie Inc