JKL Corporation (the corporation) has been profitably operating a retail sales b
ID: 2427987 • Letter: J
Question
JKL Corporation (the corporation) has been profitably operating a retail sales business for several years. Jake is the sole shareholder, officer, and employee of the corporation. On October 6, 2014 the corporation entered into a five-lease with Kelvin and moved its business into the new premises. On November 10, 2014 the Last Rational Bank made a $5,000 loan to the corporation. On February 1, 2015, a patron slipped and fell in the premises, seriously injuring her back. The February rent and loan payments are in default. For which will Jake be subject to personal liability? a. The loan and rent only. b. Damages for the slip and fall only. c. The loan, the rent, and damages for the slip and fall. d. None of the above.
Explanation / Answer
correct option is "D" -None of above
Since Jack is running its business through corporation ,corporation is entitle for all its liability incurred .However if corporation is in the form of unlimited liability the same can be recovered from shareholder .
In this case,jack does not have any personal liability.
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