Which of the following most accurately describes financial liability in the event of a successfully prosecuted criminal case against a company?
A)Partners and corporate executives can go to jail, but not shareholders or bondholders.
B)Partners can go to jail, but not corporate executives, shareholders, and bondholders.
C)Active partners can go to jail, but not silent partners, shareholders, or bondholders.
D)Partners, shareholders, and corporate executives can go to jail, but not bondholders.
E)None of the above.

Question

Quizplus · Accepted Answer

In a successfully prosecuted criminal case against a company, partners and corporate executives can face jail time due to their direct involvement or oversight in the company's operations that led to the criminal activity. Shareholders and bondholders, who are investors without a role in the day-to-day operations, typically do not face jail time for the company's criminal actions.

Which of the Following Most Accurately Describes Financial Liability in the Event