1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Masteriza [31]
3 years ago
6

Brian is the 99% shareholder, president, and director of Arapine Corp. He frequently uses the corporation credit card for his pe

rsonal expenses. If Arapine is insolvent and unable to pay its debts, and the corporation’s creditors sue Brian personally, what is the likely result?
Business
1 answer:
Alika [10]3 years ago
6 0

Answer: (C) Brian is liable because the court will pierce the corporate veil.

Explanation:

The phrase "PIERCING THE CORPORATE VEIL" is used to describe a situation where a Court decides to hold Corporate Shareholders and/or LLC Owners personally liable for the liabilities of a corporation.

When individuals act in a way that does not separate them from the company (dissolving this 'veil'), the Court looks upon this seriously and treats it in kind. Some instances of this happening are, failure to keep business and personal funds separate and diverting business assets for personal use without proper documentation as Brian seems to have done.

For this reason, the Court will very much likely Pierce the veil.

If you need any clarification do react or comment.

You might be interested in
Juniper company uses a perpetual inventory system and the gross method of accounting for purchased. the company purchase $9,750
dusya [7]
Due to the return of merchandise Juniper Company needs to shift some numbers around to make sure the correct journal entry is in place. To do so, Juniper Company will debit $1,500 from Accounts Payable. Next, they will place a credit to of $1,500 to Merchandise Inventory. 
8 0
3 years ago
Read 2 more answers
Which countries were involved in the central powers alliance.
kirza4 [7]
Germany, Austria-Hungary, Ottoman Empire and Bulgaria.
7 0
3 years ago
_______ property is an ownership fence, which applies to resources like land that more than one individual owns jointly.
OverLord2011 [107]

Answer:

Common

Explanation:

6 0
2 years ago
There is _____ to say that a company's socially responsible actions significantly hurt its long-term economic performance.
Trava [24]
The answer is "little evidence".
4 0
3 years ago
What are a firm's key assets?
I am Lyosha [343]

Key assets represent knowledge that your business has that is critical to the operation of your business. ... Basically, anything about your business that is essential to its core operation would be considered a knowledge asset.

5 0
3 years ago
Read 2 more answers
Other questions:
  • The financial statements of the Skysong, Inc. reports net sales of $372000 and accounts receivable of $60000 and $31200 at the b
    6·1 answer
  • What will be the amount accumulated by each of the given present investment? (a) (a) $5,500 in 10 years at 9% compounded semiann
    11·1 answer
  • FILL IN THE BLANK
    9·1 answer
  • Badan
    6·1 answer
  • Recent changes in the way people work, including the composition of the workplace and the use of enhanced technologies, are join
    11·1 answer
  • Strategic fit among the many activities in the value chain is critical for competitive advantage because it is more difficult fo
    10·1 answer
  • Prior to investing, you should..
    8·1 answer
  • Cash received prior to delivering a product or performing a service is called what
    8·1 answer
  • Sugarland Company is using new cost drivers for its accounting system. One driver material handling for unit variable costs and
    8·1 answer
  • Question 11 (3 points)
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!