Multiple Choice
Regarding corporations,which statement follows the principle of limited liability?
A) a director who drives dangerously and causes an accident while on company business
B) Shareholders of a small,private company provide security or personal guarantees on loans made to their company.
C) A corporation is liable for its own debts.
D) The trustee in bankruptcy requires shareholders to repay corporate property received prior to bankruptcy.
E) A dividend is paid to a shareholder although the corporation make no profits-the shareholder is liable for the corporation's debt to the extent of the dividend.
Correct Answer:

Verified
Correct Answer:
Verified
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