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Since There Is Normally Limited Liability for the Owners of Corporations

Question 10

Multiple Choice

Since there is normally limited liability for the owners of corporations, special rules have evolved to protect corporate creditors. These rules are primarily concerned with


A) borrowing by the officers of a new corporation.
B) blocking management from impairing capital through business losses.
C) preventing the negligent conduct of officers and/or employees.
D) the sudden substantial impairment of the capital of a company.
E) stopping creditors from making loans to corporate "shells".

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