Walter Bradham,the Owner of Bradham Corporation Muddled His Personal Finances

question 65

Multiple Choice

Walter Bradham,the owner of Bradham Corporation muddled his personal finances with his business accounts.Following a suit into the financial irregularities at Bradham Corporation,a court subjected the Corporation to the decision of piercing the veil.Which of the following course is the court most likely to take in this case?

• A) It will convert Bradham Corporation into a separate legal entity.
• B) It will dissolve the corporation into a sole partnership under Bradham.
• C) It will change Bradham's liability in the business to one that of a limited partner.
• D) It will hold that Bradham has no personal liability for Bradham Corporation's debt.

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Definitions:

Service Entities

Organizations that primarily provide intangible products or services to customers or other businesses.

Manufacturing Entities

Businesses involved in the production of physical goods from raw materials through a systematic process of transformation.

Function Of Controlling

The managerial process of monitoring organizational performance against goals and objectives and making adjustments as needed.

Controller

A high-level executive responsible for overseeing the accounting, auditing, and budgeting within an organization.