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
The City of South River budget for the fiscal year ended June 30, 2020, included an appropriation for the police department in t
Eduardwww [97]

Answer:

CITY OF SOUTH RIVER

APPROPRIATION (appr), EXPENDITURES (expend), AND ENCUMBRANCES (encum) LEDGER

GENERAL FUND: PUBLIC SAFETY - POLICE

MONTH: JULY, 2020

Tran

-  Refer  -  App  -     Encum  -   Expend  -  Unexpended App Balance

1       Budget   -8706000      -              -                     8706000

2    Purchase

      Orders

      issued          -         533000          -                     8173000

3   Invoice

   received and

   approved for

    payment        -          -496000       486000                8183000

4     Payrolls      -               -                  302000               7881000

5     Budget

   Revision     58000             -                -                         7823000

Total                8648000     37000          788000              7823000

3 0
3 years ago
One of the draw backs of the profitablity index as a criteria for judging whether to accept a capital investment project is that
Naya [18.7K]

Answer:

It might lead to over-optimistic projections

Explanation:

In simple words, the problem with using profitability index as the index criteria lies with the procedure of estimating it. In order to consider the business situation, the organisational finance group requires to settle with the corporation supervisors.

Leadership may be too enthusiastic about their assignment, so forecasts for cash flow may be too substantial. Consequently, in predicting the profitability index, there may be an uptrend prejudice.

3 0
3 years ago
If a student identifies herself as having strong writing skills and an interest in working on her own, which of the following mi
Mekhanik [1.2K]
She could try becoming an author, they write in magazines, newpapers, books, and articles. She could write what she wishes and it's on her own.
7 0
3 years ago
Read 2 more answers
Which option below best represents what is included in the calculation of the United States gross domestic product (GDP)?
stepladder [879]
Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Though GDP is usually calculated on an annual basis, it can be calculated on a quarterly basis as well (in the United States, for example, the government releases an annualized GDP estimate for each quarter and also for an entire year).

All the products by U . S company matter where are they products
7 0
3 years ago
An investment project provides cash inflows of $570 per year for eight years. what is the project payback period if the initial
Aloiza [94]
Payback period is the time you have to wait for your funds to recover from its initial investment through cash inflows generated by your project. This is how economists appraise their project's viability. For even cash inflows, the equation is

Payback period = Initial investment/Cash inflows
Payback period = $1675/$570 per year
Payback period = 2.94 or approximately 3 years.
4 0
3 years ago
Other questions:
  • Receive cash from customers, $16,400. Pay cash for employee salaries, $10,400. Pay cash for rent, $4,400. Receive cash from sale
    9·1 answer
  • HELPPPP!! ASAP PLEASE!
    5·1 answer
  • Both Dave and Caroline produce sweaters and socks. If Dave's opportunity cost of producing 1 sweater is 3 socks, and Caroline's
    10·1 answer
  • What is a corporate bond? why would a company use bonds as a source of financing?
    9·1 answer
  • Carmel Corporation is considering the purchase of a machine costing $56,000 with a 9-year useful life and no salvage value. Carm
    9·1 answer
  • I=5 ia called........ language​
    10·1 answer
  • All Wet Water Softener Systems has Cash of $400?, Accounts Receivable of $1,000?, and Office Supplies of $600. All Wet owes $300
    9·1 answer
  • Jefferson Handyman Services has total assets for the year of $ 15 comma 400 and total liabilities of $ 8 comma 680. Requirements
    5·1 answer
  • New parents express concern that, because of the mother’s emergency cesarean birth under general anesthesia, they did not have t
    6·1 answer
  • A content analysis of an organization's messages, readability studies, and readership surveys are all tools used to conduct a(n)
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!