Identifying the Facts and Issues

Solo Services, Inc. was a

corporation

$.$ A business of this type

is

considered a separate legal entity from its owners. When Toby Solo set up an account for Solo Services, Inc. with Lakes Express,

Solo Services, Inc.

would be liable for any charges on that account.

Assessment question

Toby Solo

was

a shareholder in Solo Services, Inc. One of the advantages of being a shareholder in a corporation is the

limited

liability of shareholders. The principle of limited shareholder liability means that shareholders are not personally liable for the debts of the corporation beyond

their investment in the corporation

$.$ If Solo Services, Inc., was dissolved, and assets were distributed, then Toby Solo likely

select answer

the value of his investment. Toby Solo

select answer

have had assets outside of the company that he would have been allowed to keep when the company was dissolved.

Assessment question