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Ray Is a Shareholder of Small Biz Company (SBC)

Question 65

Multiple Choice

Ray is a shareholder of Small Biz Company (SBC) .When the direc-tors fail to undertake an action to redress a wrong suffered by SBC,Ray files a suit on the firm's behalf.
-Larry is a shareholder for Custom Colors,Inc.If Custom Colors fails,Larry will


A) be liable for Custom Colors' debts.
B) not be liable for Custom Colors' debts.
C) be able to reclaim his initial investment in Custom Colors.
D) be able to reclaim his initial investment in Custom Colors plus damages.

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