Rex Forms Shell Company to Assume Debts That He Does

question 45

Multiple Choice

Rex forms Shell Company to assume debts that he does not wish to pay. The firm is not intended to make a profit, and Rex does not provide it with sufficient capital. This most likely warrants

• A)tricking Rex into disclosing Shell's true purpose to Rex's creditors.
• B)recognizing Shell as a de facto corporation.
• C)piercing Shell's corporate veil.
• D)requiring Rex to commingle his personal funds and Shell's funds.

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Definitions:

Conservation

Conservation involves the protection, preservation, management, or restoration of natural environments, wildlife, and natural resources.

Preoperational

A stage in Piaget's theory of cognitive development, typically from ages 2 to 7, where children are unable to understand concrete logic and are instead focused on manipulation of symbols and language.

Concrete Operational

A phase in Piaget's model of cognitive growth where kids develop the skill to reason logically regarding tangible occurrences.

Sensorimotor

Pertaining to the combined processes of sensory input and motor output, often in the context of development or reaction to environmental stimuli.