Edith is the only shareholder and director of Edie Inc., a corporation incorporated by Edie 2 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

Incorporation typically provides limited liability protection, meaning Edie is not personally liable for the corporation's debts unless she has personally guaranteed them or engaged in fraudulent activities.

Edith Is the Only Shareholder and Director of Edie Inc