In Which of the Following Cases Can the Alter Ego

question 5

Multiple Choice

In which of the following cases can the alter ego doctrine be invoked in a corporate civil case?

• A)when shareholders bring a lawsuit on behalf of the corporation after the corporation failed to do it itself
• B)when unpaid creditors are trying to collect from shareholders who owe a debt to the corporation
• C)when there is a mismanagement of stocks by the board of directors
• D)when shareholders are trying to collect for fraud committed by a third-party

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Definitions:

Budget Variance

This is the difference between the budgeted or planned amount of expense or revenue, and the actual amount incurred or received.

Standard Hours

The set amount of time expected to complete a job or task, often used for planning and assessing the efficiency of operations.

Volume Variance

The difference between the budgeted volume of production and the actual volume, which affects the fixed overhead costs.

Direct Labor-Hours

A measure of the total hours worked by employees who are directly involved in the production process of a company's products or services.