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Business, 25.11.2021 14:00, dinapearce6078
Assume the football team is set up as a C corporation and that Lenny, Sarah, and Sam are the shareholders. After setting up the corporation, no formalities of the corporation were kept. Lenny, Sarah and Sam all pay most of their personal bills out of corporate bank accounts. The team is sued for negligence because an individual who turned to see the quarterback running naked crashed her car, but the team does not have sufficient funds or insurance to cover the judgment. Which of the following is true?
a. The corporation may have liability as well as the owners individually, and the owners' liability unlimited.
b. The corporation may have liability as well as the owners individually, but the owners' individual liability is limited to twice their investment in the company.
c. The individual owners may have liability, but not the corporation itself.
d. The corporation may have liability, but not the individual owners.
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Answers: 1
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Assume the football team is set up as a C corporation and that Lenny, Sarah, and Sam are the shareho...
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