Answer:
A) This is called piercing the corporate veil and may result in significant liability for the corporation's principals.
Explanation:
The phrase "Piercing the corporate veil" is used to describe a situation where a court will put aside limited liability and hold a corporation's shareholders or directors liable for the actions and liabilities of the corporation.
This is not a common procedure and courts usually do this based on the following:
- "unity of interest and ownership": interest of the shareholders doesn't stand together anymore.
- "wrongful conduct": illegal or wrongful actions by the directors or shareholders.
- "proximate cause": as a result of the illegal or wrongful actions, other parties were harmed.
Answer:
Answer is option C, i.e. trusts discourages taking risks.
Explanation:
If the relationship between the supervisors and employees is based on trust and they are ready to rely on each other with almost everything related to their jobs, then there are greater chances that each of them would be equally ready to enter into any risk that may benefit them in long run. Therefore, a strong trustworthy relationship between the supervisors and the employees encourages them to take risks and not discourages them to do so. Therefore, the answer is option C.
Answer:
$315,250
Explanation:
total discount on bonds payable = $320,000 - $315,000 = $5,000
amortization of bond discount per coupon payment = $5,000 / 20 = $250
bonds carrying value after the first coupon payment is made = $315,000 + $250 = $315,250
Dr Interest expense 8,250
Cr Cash 8,000
Cr Discount on bonds payable 250
Answer:
<em>It passes by probate to the deceased tenant's heirs.</em>
Explanation:
Probate is the legal process of handing over control of properties from the name of a deceased person to the names of recipients.
It also guarantees that creditors may make reimbursement demands from the estate of the deceased, and that final tax returns are filed, including a tax return on the estate if the estate is big enough.
