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Yolanda Is a Shareholder in a Corporation Which Is Sued

Question 37

Multiple Choice

Yolanda is a shareholder in a corporation which is sued. Which of the following is true of Yolanda's potential liability?


A) Yolanda is fully liable for the corporation's actions
B) Yolanda may be liable for the corporation's actions if she was on the corporate board.
C) Yolanda may be liable for the corporation's actions if the corporation is an S-corp but not a C-corp
D) Yolanda may be liable for the corporations' actions if the corporation is a C-corp but not an S-corp
E) Yolanda's liability is limited to her investment in the corporation

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