Claire opened Claire's Beauty Parlor in her home. She solicited funds to begin the business from Jack, who was led to believe that the business was incorporated. Claire had, in fact, never filed the papers. One day, Claire fell asleep while giving a customer a permanent and the solution caused her customer severe burns. The customer sued the Beauty Parlor for $500,000, an amount enormously in
excess of the business assets. Under the RMBCA, what would be the result?
A) Claire and Jack would not be personally liable.
B) Claire would not be personally liable, but Jack would.
C) Jack would not be personally liable, but Claire would.
D) Both would be personally liable since there was no corporation formed.
C
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When an investor uses the equity method to account for investments in common stock, the investment account will be increased when the investor recognizes
a. a proportionate share of the net income of the investee. b. a cash dividend received from the investee. c. periodic amortization of an intangible arising from contractual rights acquired in the purchase. d. depreciation related to the excess of market value over book value of the investee's depreciable assets at the date of purchase by the investor.
Yamaha manufactures which set of products with complementary demands to address seasonal variations?
A) golf clubs and skis B) swimming suits and winter jackets C) jet skis and snowmobiles D) pianos and guitars E) ice skates and water skis
In an installment contract, if the contract is silent about payment, the Code provides that the seller may demand the price, if it can be apportioned, for each lot
a. True b. False Indicate whether the statement is true or false
Carlos is the new assistant branch manager of a larger Florida-based bank and the branch manager has asked him a question to test his knowledge. The question is which rate should the bank advertise on monthly-compounded loans, the nominal annual percentage rate or the effective annual percentage rate? Which rate should the bank advertise on quarterly-compounded savings accounts? Explain. As a consumer, which would you prefer to see and why?
What will be an ideal response?