Each of the Following Is a Factor Used by Courts

question 74

Multiple Choice

Each of the following is a factor used by courts to determine whether to pierce the corporate veil except:

• A) poor management and decision making performed by inadequately trained or educated manager.
• B) inadequate capitalization.
• C) evidence of fraud or willful misconduct.
• D) failure to follow necessary corporate formalities

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Definitions:

Group Efficacy

The collective belief of a group in its ability to achieve objectives and successfully accomplish tasks.

Competent

Having the necessary ability, knowledge, or skill to do something successfully or efficiently.

Open-book Management

A management approach where businesses share financial and other performance data with all employees to involve them more in the decision-making process.

Company's Business Goals

Specific objectives that a company aims to achieve, ranging from financial performance, market expansion, to innovation and customer satisfaction.