Mount Pleasant Tires 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) he is a sole proprietor of the business.
B) the business is a corporation and he is a shareholder.
C) he committed the tort.
D) he is a general partner of the business.

Question

Quizplus · Accepted Answer

In a corporation, shareholders (like Jess, if he 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 distinguishing corporations from other business structures like sole proprietorships and general partnerships, where owners can be personally liable for business obligations.

Mount Pleasant Tires Does Not Have Sufficient Funds to Pay