One of the Main Attractions of the Company as a Business

question 16

Multiple Choice

One of the main attractions of the company as a business structure is the limited liability that it affords directors.Sometimes the Court will however 'lift the corporate veil', disregard the separate personality of the company, and hold directors personally liable for the actions of the company.In which of the following circumstances is the Court least likely to do this?

• A)Where the corporate form is being used to avoid an existing duty.
• B)Where the company is acting as the agent of the directors.
• C)Where the company is unable to repay a business loan.
• D)Where the insolvent trading provisions of the Corporations Act 2001 (Cth) apply.

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Definitions:

Spacing Effect

A psychological phenomenon where learning is more effective when study sessions are spaced out over time rather than conducted in a single session.

Human Memory

The capacity of the human brain to store, retain, and retrieve information from past experiences or learning.

World Wide Web

An information system where documents and other web resources are identified by URLs, interlinked by hypertext links, and accessible via the internet.

Outer Space

Outer space is the vast expanse that exists beyond Earth and its atmosphere, characterized by a vacuum and the presence of celestial bodies like stars, planets, and asteroids.