A corporation is a separate legal entity. When it defaults on a debt, creditors generally look to the corporation’s assets to satisfy the obligation through normal legal remedies (judgment enforcement, seizure, insolvency proceedings). Therefore, C is correct. Professional liability (errors and omissions) insurance (A) is designed to respond to certain claims of professional negligence, not ordinary corporate debt obligations. Executives’ personal assets (B) are generally protected by limited liability unless they provided personal guarantees, engaged in fraud, or statutory exceptions apply. The engineering regulator (D) is not a debt-collection mechanism; regulators oversee licensure and professional conduct, not repayment of corporate creditors. Accordingly, creditors’ primary recovery is from corporate assets (C).
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