Joe and Josephine have started a plumbing business. The business is incorporated, but they have not invested any money in the business, which has only minimal assets. One day Josephine negligently damages a main pipe in a customer's home, causing the basement to flood and resulting in $20,000 in damages. The homeowner's only remedy is to sue the corporation, but because the corporation has no funds and only minimal assets, the homeowner will bear the loss. Joe and Josephine are personally shielded from liability due to the corporate protections the business entity affords them.
True
False
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Joe and Josephine have started a plumbing business. The business is incorporated, but they have not invested any money in the business, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A firm's profit margin is 5%, its debt ratio is 56%, and its dividend payout ratio is 40%. If the firm is operating at less than full capacity, then sales could increase to some extent without the need for external funds, but if it is operating at
Answers (1)
ABC Online Merchant has a current stock price of $42.50. The company paid $1.34 in dividends this year, and the dividends are expected to grow at 3% per year. If an investor has a required rate of return of 5%, what is ABC worth to that investor
Answers (1)
On January 1, 2018, Corvallis Carnivals borrows $28,000 to purchase a delivery truck by agreeing to a 6%, three-year loan with the bank. Payments of $851.81 are due at the end of each month, with the first installment due on January 31, 2018.
Answers (1)
Describe at least two negative outcomes of having too much money and credit in the economy
Answers (1)
Debit postings to the individual accounts in an accounts receivable subsidiary ledger generally come from the
Answers (1)
New Questions in Business
Describe how each of the following events would affect (1) demand for construction workers and (2) construction wages in Portland, Oregon. Illustrate with supply and demand curves. The economy of the area booms.
Answers (1)
Gail Griffith, manager of the finance division, distributes relevant information every day to all her employees, enabling them to make quality decisions. Gail is performing which of the following roles?
Answers (1)
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $5,130,000 (190,000 hours at $27/hour) and that factory overhead would be $1,430,000 for the current period.
Answers (1)
LO 4.4How is the predetermined overhead rate determined?
Answers (1)
Suppose i would like to prevent a line break in word from splitting apart my customer's title and name, "mr. jones", should it happen to come at the end of a line. what key combination can be used to enter a non-breaking space between "mr.
Answers (1)