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When a No-Liability Company Defaults on Its Loans with Its

Question 17

Multiple Choice

When a no-liability company defaults on its loans with its creditors,this means the:


A) creditors have a legal claim against the directors only.
B) creditors have a legal claim against the CEO only.
C) creditors have a legal claim against the chairman of the company.
D) shareholders do not have to meet any remaining payment on shares.

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