Sue owns 567 pairs of old shoes that she purchased at various garage sales and thrift shops. She decides one day that she is going to try and sell the shoes for a profit. Using her life's savings, she buys a shop downtown and outfits it accordingly (sign's, window dressing, cash register, shelves, supplies & decorations). Her business is called Sue's Shoes Given the above description, the business of Sue's shoes is likely a:

a. C Corporation

b. S Corporation

c. Sole Proprietorship

d. Limited Liability Company

Sue's Shoes leased a cash register from Bobs Machine Corp. One day while Sue was at the register, it started making all sorts of odd noises and then suddenly exploded. The explosion set fire to the old shoes and caused injury to several customers. With respect to ant tort liability that Sue's Shoes might have . . . Which statement is correct?

a. Sue is not personally responsible for the tort liabilities of the business

b. Sue is only liable up to her investment

c. Sue is personally responsible for the tort liabilities of the business

d. The doctrine of respondeat superior applies here

Answer rating: 100% (QA)

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