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uon and Ashish are the only shareholders in QA Corp., a corporation established to provide satellite television service. Quon and Ashish each contribute $1,000 for
uon and Ashish are the only shareholders in QA Corp., a corporation established to provide satellite television service. Quon and Ashish each contribute $1,000 for start-up capital and make no contributions after that. In the first three months alone, QA Corp's debts reach $50,000. Any income for the corporation is applied to the day-to-day operating costs, but it is not nearly enough to cover these costs, so the corporation continues to go deeper and deeper in debt. When the debtors of QA Corp. file a lawsuit asking the court to hold Quon and Ashish personally responsible for the corporate debts, the court is likely to
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