An important feature of corporations is that __________.
A) officers of a corporation are legally responsible for the acts of the corporation
B) officers of a corporation may not be held responsible for the acts of the corporation
C) officers of a corporation are financially responsible for the debts of the corporation
D) any benefits of a corporation, such as monetary funds, must be distributed equally among all officers in the upper hierarchy of the corporation

Question

Quizplus · Accepted Answer

Officers of a corporation are generally not personally liable for the acts of the corporation due to the legal principle of limited liability, which protects their personal assets from corporate debts and obligations.

An Important Feature of Corporations Is That __________