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:

Dependent Variables

In research, these are the variables that are tested to see if they are affected by changes in independent variables, essentially the outcome of interest.

Unscientific Thinking

Reasoning or belief that does not adhere to the scientific method, often relying on anecdotal evidence, personal experience, or unverified claims.

Variable

denotes an element, feature, or factor that can change or vary within the context of a study, experiment, or statistical analysis.

Concept

A general idea or understanding that represents a class of phenomena, objects, or events.