Courts Will Sometimes Ignore the Separateness of a Corporation and Its

question 42

Multiple Choice

Courts will sometimes ignore the separateness of a corporation and its shareholders by piercing the corporate veil in order to:

• A)promote justice and to prevent inequity.
• B)prevent equity only.
• C)promote justice only.
• D)set examples for other corporations.

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Definitions:

Marginal Cost

The increase in total cost that arises from an increase in production by one additional unit.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, representing the average cost of each unit of output when only variable costs are considered.

Cost-Minimizing Firm

A business entity that seeks to achieve production at the lowest possible cost.

Production Function

A mathematical representation that identifies the relationship between input resources and the output of goods or services for a business or economy.