Question

The limited liability of a stockholder in a closely-held corporation may be challenged successfully if the stockholdera. Undercapitalized the corporation when it was formed.b. Sold property to the corporation.c. Was a corporate officer, director, or employee.d. All of the abovee. None of the above

Answer 1

Answer:

The correct Option is A

Explanation:

When the limited liability of the stockholder and it is a closely held corporation which might be challenged successfully if the stockholder, undercapitalized the corporation  which means that the corporation does not have enough capital to pay creditors and conduct normal operations of the business and it will be done when it is established or formed.