Beta

Flashcards Studio

Write, submit, and receive AI feedback with score breakdowns.

Study Settings View Stats

Grades Left 0 this week

AI Graded 0 this week

Tracked Cards 0 saved

Due Review 0 cards

Source Habit Habit Showing the closest available flashcard practice.

Topic

Question Type

Reader

0 tracked cards Business Associations

A properly formed corporation enters a contract through an authorized officer and later defaults. The creditor sues a passive shareholder personally, arguing that the shareholder owns 30 percent of the corporation and should therefore pay 30 percent of the debt.
Which statement is most accurate?

Choose the Best Answer

A corporation is separate from shareholders only if it has exactly one shareholder. Once properly formed, a corporation is generally a separate legal entity, and shareholders are not personally liable for corporate debts merely by owning shares. Shareholders avoid liability only by signing every corporate contract. A corporation becomes separate only after ten years of profitable operation.

Load another random question

Your Progress

No data Retention

Tracked Cards: 0
Accuracy: No data
Retained: 0

View Detailed Analytics

Difficulty Breakdown

Answer flashcards to build a real score-based difficulty breakdown.

Current Streak 0 Days

Start a streak with this card.

Suggested Decks

View All

Leech Cards

Review

No recent weak flashcards in your saved workbook.

More

Flashcards Studio

Question

Choose the Best Answer

Hello