A corporate veil can be pierced for inadequate capitalization. True False
A corporate veil can be pierced for inadequate capitalization.
True
False
Homework Answers
The answer is given below:
True
Inadequate capitalization is a situation where capitilization is very less in relation to the nature of the business, this is a protection given to the shareholders personal assets in law suit the shareholder who is the plaintiff may seek pierce the corporate veil for a capitalization.
Add Answer to:
A corporate veil can be pierced for inadequate
capitalization.
True
False
True/False Indicate whether the statement is true or false _____ 3. "Piercing the corporate veil" will...
True/False Indicate whether the statement is true or false _____ 3. "Piercing the corporate veil" will result in personal liability of shareholders. _____ 5. Under Subchapter S of the Internal Revenue Code, a corporation's income is taxed only at the shareholder level. _____ 6. The doctrine of ultra vires is of more significance today than it has been in the past. _____ 7. A corporation has no constitutional protection against unreasonable searches and seizures.
Which of the following is not considered a relevant factor by courts when judging whether fairness...
Which of the following is not considered a relevant factor by courts when judging whether fairness demands that the corporate veil should be pierced? Failing to follow corporate formalities. Inadequate capitalization. The personal wealth of the principals. Fraudulent transactions by the principals.
Explain the types of companies and the exceptions of corporate veil. Discuss the duties of the...
Explain the types of companies and the exceptions of corporate
veil. Discuss the duties of the directors of a company. Give your
view on the exceptions of corporate veil and duties of the
directors
ASSIGNMENT QUESTION PURPOSE The purpose of this assignment is to enhance learners' ability to explain the types of companies and exceptions of corporate veil. Learners are also expected to be able to discuss the duties of directors of a company. REQUIREMENT Explain the types of companies...
What is "piercing the corporate veil" and give an example of when a Court would do...
What is "piercing the corporate veil" and give an example of when a Court would do so?
Piercing the Corporate Veil Many business owners choose corporations as their business form because they want...
Piercing the Corporate Veil Many business owners choose corporations as their business form because they want to enjoy the limited personal liability corporate status offers. Because a corporation is considered a separate entity, shareholders enjoy limited personal liability from the debts of the corporation. However, in some cases, courts will deny limited liability to a corporation that would normally have de jure or de facto status because shareholders have used the corporation to engage in illegal or wrongful acts. In...
Static budgets are suitable for planning, however they can be inadequate for control if the actual...
Static budgets are suitable for planning, however they can be inadequate for control if the actual level of activity during the period diffe Select one True O False ning, however they can be inadequate for control if the actual level of activity during the period differs significantly from the budgeted level.
Under what circumstances may a court pierce the corporate veil and what happens when it does?
Under what circumstances may a court pierce the corporate veil and what happens when it does?
What is the “corporate veil” and under what circumstances is an Australian court likely to lift...
What is the “corporate veil” and under what circumstances is an Australian court likely to lift it? you can take idea of a company being a separate legal entity, how and when Australia court likely lift up and examples of some legislation and cases in Australia to show your research? As some circumstances are Agency, Fraud, sham, justice, group enterprises, but need further research with example of cases and legislation of country Australia.
What are some of the reasons for inadequate prosecution of corporate or executive crimes?
What are some of the reasons for inadequate prosecution of corporate or executive crimes?
CASE SUMMARY 15.1 Miner v. Fashion Enterprises, Inc., 794 N.E.2d 902 (2003) PIERCING THE CORPORATE VEIL...
CASE SUMMARY 15.1 Miner v. Fashion Enterprises, Inc., 794 N.E.2d 902 (2003) PIERCING THE CORPORATE VEIL Karen Lynn, Inc. (Lynn Corporation), was a wholly owned subsidiary of Fashion Enterprises, Inc. This meant that the sole shareholder of Lynn Corporation was the corporate entity of Fashion Enterprises, Inc. Lynn Corporation entered into a 10-year lease for retail space in Chicago with Miner, providing neither per- sonal guarantees nor any guarantee by Fashion Enter- prises. The company defaulted on the lease by...
Explain the types of companies and the exceptions of corporate
veil. Discuss the duties of the directors of a company. Give your
view on the exceptions of corporate veil and duties of the
directors
ASSIGNMENT QUESTION PURPOSE The purpose of this assignment is to enhance learners' ability to explain the types of companies and exceptions of corporate veil. Learners are also expected to be able to discuss the duties of directors of a company. REQUIREMENT Explain the types of companies...
Static budgets are suitable for planning, however they can be inadequate for control if the actual level of activity during the period diffe Select one True O False ning, however they can be inadequate for control if the actual level of activity during the period differs significantly from the budgeted level.
CASE SUMMARY 15.1 Miner v. Fashion Enterprises, Inc., 794 N.E.2d 902 (2003) PIERCING THE CORPORATE VEIL Karen Lynn, Inc. (Lynn Corporation), was a wholly owned subsidiary of Fashion Enterprises, Inc. This meant that the sole shareholder of Lynn Corporation was the corporate entity of Fashion Enterprises, Inc. Lynn Corporation entered into a 10-year lease for retail space in Chicago with Miner, providing neither per- sonal guarantees nor any guarantee by Fashion Enter- prises. The company defaulted on the lease by...
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