If they form a corporation and Pat Smith gets into an accident with the company's van and the van is not insured, George Johnson could be held personally liable for any damages resulting from the accident.

Question

Quizplus · Accepted Answer

In a corporation, shareholders like George Johnson typically have limited liability, meaning they are not personally liable for the corporation's debts or liabilities, including accidents involving company vehicles.

If They Form a Corporation and Pat Smith Gets into an Accident