Describe the doctrine of piercing the corporate veil
What will be an ideal response?
Shareholders of a corporation generally have limited liability, that is, they are liable for the debts and obligations of the corporation only to the extent of their capital contribution, and they are not personally liable for the debts and obligations of the corporation. However, if a shareholder or shareholders dominate a corporation and misuse it for improper purposes, a court of equity can disregard the corporate entity and hold the shareholders of the corporation personally liable for the corporation's debts and obligations. This doctrine is commonly referred to as piercing the corporate veil. It is often resorted to by unpaid creditors who are trying to collect from shareholders a debt owed by the corporation. The piercing the corporate veil doctrine is also called the alter ego doctrine because the corporation becomes the alter ego of the shareholder or shareholders.
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The difference between accrual-based revenue and accrual-based expenses is called _________________________
Fill in the blank(s) with correct word
The separate entity concept requires that
a. the personal assets and liabilities of an owner not be shown on the business's financial statements. b. transactions that involve an exchange of value be kept separate from those that do not. c. tax records be kept separate from financial reporting records. d. a separate set of books be established for each segment of a business.
What are the three major types of vertical marketing systems?
A) corporate, contractual, and chain B) contractual, corporate, and independent C) corporate, contractual, and administered D) administered, independent, and franchised E) corporate, franchised, and task
Under which of the following heads will fringe benefits paid to assembly–line workers appear?
a. Indirect labor b. Manufacturing overhead c. Direct labor d. Administrative overhead