Courts Have Responded by Piercing the Veil When the Shareholders

question 42

Multiple Choice

Courts have responded by piercing the veil when the shareholders have:

• A) not followed the formalities of corporate procedures.
• B) not provided an adequate financial basis for the business.
• C) used the corporation to defraud.
• D) All of these.
• E) Not followed the formalities of corporate procedures or  used the corporation to defraud.

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Definitions:

Harvested Wheat

Wheat that has been collected from fields, typically after growing and maturing over a season, and is ready for processing or sale.

Corporate Stock

Represents ownership shares in a corporation, giving holders a claim on the corporation's earnings and assets.

Article 2

A section of the Uniform Commercial Code that governs the sale of goods, specifying the rights, duties, and liabilities of parties involved.

Vehicles

Means of transport that are designed to move people or goods from one place to another, including cars, trucks, buses, and bicycles.