In the historical case of Salomon v.Salomon Ltd.,[1897] A.C.22 (H.L.) ,which of the following reflects the opinion held by the court with respect to the concerns of creditors?
A) Incorporation is undertaken to limit risk of business bankruptcy.
B) Shareholders are prohibited from becoming highly protected creditors of the company.
C) The fact that one or several shareholders limit their liability is irrelevant.
D) Shareholders are totally responsible for their own as well as the entity's obligations.
Correct Answer:
Verified
Q13: With respect to corporate entities,which of the
Q14: Amarilla is willing to contribute capital to
Q15: Which of the following is a distinguishing
Q16: Which of the following would your lawyer
Q17: Marjorie owns 1000 shares in Martina's business
Q19: Rain Water Recycling Inc.has negotiated with the
Q20: If a corporation does not offer its
Q22: Nathaniel has been asked to obtain a
Q23: In closely held corporations,which of the following
Q28: "Bonds" and "debentures" are terms used interchangeably
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents