Question

Wilson, Bart, and Susan Fields decide to set up a corporation together called Fields, Inc. They follow the correct procedures for establishing their corporation, but once it is established they do not hold regular corporation meetings. Since they are all related, they just conduct their communications and business related to Fields, Inc. at their family gatherings and over casual phone conversations. When Fields, Inc., is sued for failing to pay some outstanding debts, the court likely will:_______. a. not pierce the corporate veil. b. dismiss the case because Fields, Inc., is an open corporation. c. pierce the corporate veil due to the failure to hold required corporation meetings. d. dismiss the case because Fields, Inc., is a close corporation.

Answer 1

Answer:c. pierce the corporate veil due to the failure to hold required corporation meetings.

Explanation:Corporation is a form of business operation that declares the business as a separate, legal entity guided by a group of officers known as the board of directors. A corporate structure is perhaps the most advantageous way to start a business because the corporation exists as a separate entity.