What Does the Term "Reverse Piercing" Reference in Regard to a Corporation

question 39

Multiple Choice

What does the term "reverse piercing" reference in regard to a corporation and its shareholders?

• A) Holding a corporation liable for debts of a shareholder
• B) Holding a shareholder liable for debts of a corporation
• C) Holding a corporation liable for debts of a shareholder and holding a shareholder liable for debts of a corporation
• D) Holding a corporation liable for debts of a shareholder,holding a shareholder liable for debts of a corporation,and holding officers liable for debts of a corporation.

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Definitions:

Time Value of Money

The concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity.

Face Value

The original value of a financial instrument as stated on the instrument itself.

Compounded Annually

Interest calculation method where the interest amount is added to the principal at the end of each year, and the total becomes the principal for the next year.

Annual Deposits

Regular sums of money deposited into an account or investment annually.