If a Corporate Entity Is Disregarded by Officers or Directors

question 10

Multiple Choice

If a corporate entity is disregarded by officers or directors so that there is such a unity of ownership and interest that separateness of the corporation has ceased to exist, the corporate veil may be pierced based on the:

• A) alter-ego theory.
• B) negligent conduct theory.
• C) corporate confusion theory.
• D) corporate envelopment theory.
• E) corporate doppelganger theory.

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Definitions:

Principal

The primary party involved in a transaction or agreement, especially in finance, law, or education, or the amount of money on which interest is paid or received.

All Business

The term "all business" generally implies a focus on practical and effective actions, often with a serious or determined approach to work or tasks.

Conduct

Refers to the manner in which a person behaves, especially in a particular place or situation, or the execution of an action.

Principal/Employer

The party in an agency relationship who authorizes another (the agent) to act on their behalf, or the entity that hires employees to perform work.