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Question
Evan has received permission from his state to form a corporation for his startup, expecting his liability would be limited to the amount of his investment. But his bank asked him to assume personal liability before it would grant him a business loan. Why would the bank make this demand?
a. Evan did not invest enough into the business. b. Evan is the only stockholder.
c. Evan has more assets than the business. d. Evans business has no credit history.
Answer
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