Ralph Formed a Corporation as a Fund Manager

question 62

Multiple Choice

Ralph formed a corporation as a fund manager. He accepted money from his customers, promising to invest it and build cash value for them. Instead, he kept the money for himself to enjoy a lavish lifestyle. The court removed liability protection from his corporate entity because the incorporation had been used to perpetuate fraud. This is an example of

• A) piercing the corporate veil.
• B) unlimited liability.
• C) reciprocation.
• D) a preemptive right.

---

Definitions:

Two-Factor Theory

A model that explains emotions as a result of physiological arousal and cognitive labeling of that arousal.

Low-Road Pathway

A neural pathway that processes sensory information related to threats and emotions more rapidly than the cognitive processing pathways, often bypassing conscious thought.

Carroll Izard

An American psychologist known for his contributions to the understanding of emotions and their impact on human behavior, particularly the theory of Differential Emotions which categorizes ten basic emotions.

Basic Emotions

Fundamental emotions that are universally recognized, such as happiness, sadness, fear, and anger.