The Corporation Is Viewed as the Alter Ego of the Shareholder-Manager

question 3

True/False

The corporation is viewed as the alter ego of the shareholder-manager when shareholders mix their personal dealings and corporate transactions as if all were personal.

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Definitions:

Inventory Loans

Short-term loans or lines of credit secured by a company’s inventory, used to purchase products for sale.

Factoring Accounts Receivable

A financial transaction where a business sells its accounts receivable to a third party at a discount to immediately raise cash.

Commercial Paper

An unsecured, short-term debt instrument used by corporations to finance their immediate needs.

Accounts Payable

Obligations or debts that a company owes to its suppliers or creditors for goods or services received that have not yet been paid for.