Ralph Formed a Corporation as a Fund Manager

question 62

Multiple Choice

Ralph formed a corporation as a fund manager. He accepted money from his customers, promising to invest it and build cash value for them. Instead, he kept the money for himself to enjoy a lavish lifestyle. The court removed liability protection from his corporate entity because the incorporation had been used to perpetuate fraud. This is an example of

• A) piercing the corporate veil.
• B) unlimited liability.
• C) reciprocation.
• D) a preemptive right.

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Definitions:

Atmosphere

The layer of gases surrounding Earth or another planet, vital for life as it provides oxygen, absorbs ultraviolet solar radiation, and traps heat.

Forests

Large areas dominated by trees and undergrowth, providing habitat for biodiversity and playing critical roles in the Earth's ecosystem.

Seed-tree Cutting

A forestry technique that involves leaving a few seed-producing trees standing to regenerate the forest.

Harvested

The process of gathering mature crops from the fields or collecting the elements of a natural resource for human use.