In Order to Pierce the Corporate Veil,a Creditor Needs to Show

question 16

True/False

In order to pierce the corporate veil,a creditor needs to show that each shareholder does not actively participate in the management of the corporation.

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Definitions:

Cash Account

A ledger that tracks all cash receipts and disbursements.

NSF

Stands for "Non-Sufficient Funds," indicating that a check cannot be processed because the account does not have enough money.

Returned by Bank

Transactions or items that a bank cannot process and are sent back, such as bounced checks due to insufficient funds in the account.

Not Sufficient Funds

A term used by banks to indicate that a check cannot be honored because the account on which it was drawn does not have enough money.