Asked by Elizabeth Murphy on Feb 18, 2024

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In a C corporation,the shareholders-not the corporation-are legally liable for a company's actions.

C Corporation

A separate legal and taxable entity created by the state government and owned by an unlimited number of shareholders.

  • Recognizing the distinction between the corporation and its shareholders in terms of legal liability.
  • Identifying the role of shareholders in a C corporation.
  • Understanding the concept of legal liability in a C corporation.
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KS
Kay-Kay Smith

Feb 18, 2024

Final Answer :
False
Explanation :
In a C corporation, the corporation is a separate legal entity from its shareholders, meaning the shareholders are generally not personally liable for the corporation's actions.