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dybincka [34]
3 years ago
14

Sarah owns half of Smith Realty, Inc., and her brother Bill owns the other half. Sarah routinely uses the company car, which is

supposed to be used only for taking clients to view property, not to run her personal errands. She also routinely uses company funds for personal uses, but always pays the money back in to the corporation. When Smith Realty failed to pay its lawyer for work completed on its behalf, the lawyer sued Smith Realty as well as Sarah and Bill personally. In this situation the court likely will: a. not pierce the corporate veil, because there was no commingling of interests. b. not allow Sarah and John to be sued individually, because Smith Realty is a close corporation. c. pierce the corporate veil due to Sarah's comingling of interests. d. dismiss the case, because Smith Realty is a close corporation.
Business
2 answers:
anzhelika [568]3 years ago
7 0

Answer:

(c) pierce the corporate veil due to Sarah's commingling of interests

Explanation:

Commingling of interests usually occurs when an investment manager or realtor combines client money with their own or their firm's, in violation of a contract. This can occur in legal cases, corporate client accounts and real estate transactions. For example in this case Sarah has violated her rights as a realtor by routinely using their company funds for her own personal uses.

a_sh-v [17]3 years ago
4 0

Answer:

C) pierce the corporate veil due to Sarah's commingling of interests.

Explanation:

Smith Realty Inc. is a closed corporation since its only shareholders are Sarah and Bill. The corporate veil is a legal principle that separates the actions of the corporation from the actions of its owners, both Sarah and Bill. Piercing the corporate veil means that the limited liability protection that Sarah and Bill had as stockholders will be eliminated. That means that the corporation and the stockholders will be treated as one same entity, something similar to a partnership.

A court might decide to pierce the corporate veil in Sarah's case, it will be very difficult to to sue Bill for Sarah's wrongdoings. The lawyer can claim that Sarah commingled her own interests with the interests of the corporation because she used the corporation's assets for her own personal use, therefore she can be considered a single entity with it. In this case, commingling means to mix the shareholder's interest with the corporation's interests.  

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Exotech has an inventory turn ratio of 60 with $50 million in annual sales, and an average inventory of $250,000. What is Exotec
Goryan [66]

Answer:

$15 million

Explanation:

Data provided in the question:

Inventory turn ratio = 60

Annual sales = $50 million

Average inventory = $250,000

Now,

we know,

Inventory turn ratio  = ( Cost of goods sold ) ÷ ( Average inventory )

thus,

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8 0
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New equipment was purchased by Hunter Corporation at a list price of $94,000, with credit terms of 2/10, n/30. Payment was made
IRISSAK [1]

Answer:

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Less list price credit term(2%×$94,000)$1,880

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Add: Discount period $7,800

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8 0
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Buying the beneficiary position on a life insurance policy of someone who is dying
MaRussiya [10]

Buying the beneficiary position on a life insurance policy of someone who is dying is referred to as <u>Viatical Settlement</u>

Explanation:

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6 0
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Question Number 3) Antonio, a mid-level manager at ABC Manufacturing, is negotiating supplier agreements with a Chinese firm in
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Answer: a. ethnocentric

Explanation:

Ethnocentric orientation refers to the use of one's own culture as the yardstick by which to measure and relate to other cultures.

An ethnocentric person would relate to people from other cultures the same way they relate to people from their culture because they believe the way their culture does things is the best way.

Antonio is negotiating deals with the Chinese firm the same way he would negotiate with his fellow Americans . This means that Antonio is adopting an Ethnocentric approach.

4 0
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disa [49]

Answer:

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5 0
3 years ago
Read 2 more answers
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