Montana Mountain Guides does not have sufficient funds to pay damages for a tort that arose out of the operation of the business. Jess, a business owner, is not personally liable if:
A) she is a sole proprietor of the business.
B) the business is a corporation and she is a shareholder.
C) she committed the tort.
D) she is a general partner of the business.

Question

Quizplus · Accepted Answer

In a corporation, shareholders (like Jess, if she is one) are not personally liable for the debts or torts of the corporation beyond their investment in the company. This limited liability is a key feature of the corporate structure, distinguishing it from sole proprietorships and general partnerships where owners can be held personally liable.

Montana Mountain Guides Does Not Have Sufficient Funds to Pay