The Alter-Ego Theory Cannot Be Applied to a Limited Liability

question 10

True/False

The alter-ego theory cannot be applied to a limited liability company.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments.

Mutually Exclusive

A statistical term describing two or more events that cannot occur simultaneously.

Salvage Value

The estimated residual value of an asset at the end of its useful life, important for depreciation calculations.

Internal Rate Of Return (IRR)

The discount rate that makes the NPV of an investment zero.