Which of the Following Is Not a Factor That May

question 22

Multiple Choice

Which of the following is not a factor that may lead to "piercing the corporate veil" and imposing liability on corporate owners (shareholders) ?

• A) grossly inadequate capitalization of the corporation
• B) formation of the corporation to avoid personal liability for business obligations
• C) formation of the corporation to perpetuate a fraud or conceal illegality
• D) shareholder diversion of corporate funds or assets

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Definitions:

Specified Value

A precise measurement or standard determined by manufacturers or engineers that a component or system should meet.

Lug Nut Indicators

Safety devices that provide a visual indication if a wheel's lug nuts are loosening, commonly used in vehicles.

Pre-trip Inspection

A systematic safety check performed before operating a vehicle, especially commercial and heavy-duty vehicles, to ensure it is safe and compliant with regulations.