Regarding Corporations, Which Statement Follows the Principle of Limited Liability

Multiple Choice

Regarding corporations, which statement follows the principle of limited liability?

A) A corporation is liable for its own debts.
B) A director who drives dangerously and causes an accident while on company business.
C) 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.
D) The trustee in bankruptcy requires shareholders to repay corporate property received prior to bankruptcy.
E) Shareholders of a small, private company provide security or personal guarantees on loans made to their company.