Which of the Following Is NOT a Factor Used by Courts

question 56

Multiple Choice

Which of the following is NOT a factor used by courts to determine whether to pierce the corporate veil?

• A) Poor management and decision making by an inadequately trained or educated manager.
• B) Inadequate capitalization.
• C) Evidence of fraud or willful misconduct.
• D) Failure to follow necessary corporate formalities.

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Definitions:

Cognitive Distortions

Inaccurate or irrational thoughts and belief systems that reinforce negative thinking and emotions.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, leading to significant impairment in daily life.

Activity Scheduling

A cognitive-behavioral therapy technique involving the planning of positive activities to increase a person's engagement and enjoyment.

Behavioural Experiments

Techniques in cognitive-behavioral therapy where individuals test the validity of their beliefs through experimentation.