Author Question: Arnold was the sole shareholder, president, and chief executive officer of Algernon Enterprises, Inc ... (Read 319 times)

NguyenJ · **on:** Jun 24, 2018

Arnold was the sole shareholder, president, and chief executive officer of Algernon Enterprises, Inc Acting on behalf of Algernon, Arnold negotiated the credit purchase of inventory from Amax. The contract was signed in the name of Algernon Enterprises. Algernon never paid the sums due on the contract, and Arnold and the corporation were sued. Is Arnold personally liable to Amax?

Question 2

An investor is atrisk only for the amount actually invested.
Indicate whether the statement is true or false

randomguy133 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Arnold has no liability because the business was incorporated and the contract was made by the corporation. Shareholders and officers have no responsibility for corporate debts.

Answer to Question 2

FALSE