What does it mean to have liability for a company?
A.
It means your company is late in paying its taxes.
B.
It means you have a conflict of interest because you are in a position where you can take unfair advantage of your customers.
C.
It means your company is able to sue other companies that use your trademark.
D.
It means you can be held personally accountable for the financial debts and illegal actions of your company.
D.
To determine the correct answer, let's break down the question and analyze the options.
The question asks what it means to have liability for a company. Liability refers to legal responsibility or accountability. Therefore, we are looking for an option that describes being held responsible for something related to the company.
Option A states that having liability means the company is late in paying its taxes. While late payment of taxes may be a liability for a company, it does not encompass the full meaning of liability.
Option B suggests that having liability means having a conflict of interest and taking advantage of customers. While conflicts of interest can indeed be a liability, it does not fully capture the definition of liability for a company.
Option C states that having liability means the company can sue other companies that use its trademark. However, this option describes the company's ability to take legal action, rather than its liability.
Option D states that having liability means being held personally accountable for the financial debts and illegal actions of your company. This accurately reflects the concept of liability for a company. As a business owner or manager, you can be held personally responsible for the company's financial obligations and any illegal activities it engages in.
Therefore, the correct answer is Option D.