When a Corporation Is Set Up as a Mere Instrumentality

question 43

True/False

When a corporation is set up as a mere instrumentality of a parent corporation, it is sometimes referred to as a dummy corporation or a corporate shell.

---

Definitions:

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response.

Spontaneous Recovery

The reappearance of a previously extinguished response after a period of non-exposure to the conditioned stimulus.

Extinction

In psychology, the gradual weakening and eventual disappearance of a conditioned response when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of time without exposure to the conditioned stimulus.