Because It May Result in a Piercing of the Corporate

question 37

Multiple Choice

Because it may result in a piercing of the corporate veil, shareholders' continuous use of corporate property should most especially be avoided by

• A)a benefit corporation.
• B)a publicly held corporation.
• C)no corporation-corporate shareholders' liability is limited.
• D)a close corporation.

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Definitions:

Annual Coupon

Annual Coupon refers to the yearly interest payment that bondholders receive from the bond's issue date until it matures.

Face Value

Face value refers to the nominal value or original cost of a security as stated by its issuer, crucial for calculating interest payments for bonds.

Dollar Return

The total profit or loss in dollar terms from an investment, including both capital gains and dividends or interest.

Dollar Rate

The exchange rate of a currency against the US dollar, indicating how much one US dollar is worth in the foreign currency.