In Which of the Following Situations Would a Court Likely

question 91

Multiple Choice

In which of the following situations would a court likely to pierce the corporate veil?

• A)Shareholders attempt to commit fraud through a corporation.
• B)A corporation followed statutory mandates regarding corporate business.
• C)Shareholders' personal interests and corporate interests are separate.
• D)A corporation had adequate capital when it initially formed.
• E)None of the above; because a corporation is a legal entity separate from its owners (i.e.,its shareholders),a court cannot pierce the corporate veil in order to impose personal liability on shareholders.