Asked by Elizabeth Murphy on Feb 18, 2024
Verified
In a C corporation,the shareholders-not the corporation-are legally liable for a company's actions.
- 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.
Verified Answer
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.
Learning Objectives
- 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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