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What if The Biscuit Bakery was a corporation? Suppose Mrs. Meadows is the CEO, but does not own any stock in the company. The Biscuit Bakery sells shares of common stock to 40 shareholders, all of them individuals living in North Carolina. May the flour vendor recover the money he is owed from Mrs. Meadows' personally?
A. Yes, because she is the CEO, not a shareholder.
B. Yes, because she executed the business transaction that created the liability.
C. No, unless she was negligent or committed a tort or crime in connection with the transaction.
D. No, if The Biscuit Bakery is a close corporation.
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What if The Biscuit Bakery was a corporation? Suppose Mrs. Meadows is the CEO, but does not own any...
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