The __________ Theory Applies to the Situation in Which Owners

question 52

Multiple Choice

The __________ theory applies to the situation in which owners of a corporation have so mingled their own affairs with those of the corporation that the corporation does not exist as a distinct entity.

• A) undercapitalization
• B) alter ego
• C) per se
• D) absolute

---

Definitions:

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale.

Complexity

The state or quality of being intricate or complicated, which can arise from numerous interconnected parts or variables.

Risk Identification

The process of determining and documenting the risks that could affect the achievement of an organization's objectives.

Strategic Planning

A systematic process of envisioning a desired future and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.