Which of the Following Cannot Be Used to Pierce the Corporate

question 71

Multiple Choice

Which of the following cannot be used to pierce the corporate veil?

• A)Inadequate capitalization
• B)Alter ego theory
• C)Formation of the corporation to avoid personal liability
• D)All of the above theories can be used.

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Definitions:

Reclamation

The process of restoring land that has been mined, logged, or used for industrial purposes back to its natural state or ensuring it is usable for a different purpose.

Accumulated Depreciation

The cumulative value of depreciation expense assigned to a physical asset from the time it was first utilized.

Major Class of Asset

Represents categories of assets grouped based on their similar financial characteristics, such as cash, inventory, property, etc.

Sum-Of-The-Years'-Digits

A method of depreciation that accelerates the write-off of assets by applying a decreasing fraction to the depreciable amount each year.