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Typically Individual Stockholders Are Not Held Responsible for the Actions

Question 4

Multiple Choice

Typically individual stockholders are not held responsible for the actions of a corporation. Exceptions usually relate to comingling of funds, underinsuring, or similar actions by the corporate leadership. This is called:


A) risking liability
B) piercing the corporate veil
C) the privilege of the stockholders
D) free market trading of stocks

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