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VARVARA [1.3K]
3 years ago
12

Although a major advantage of the corporate form of entity is the liability protection for its principals, there are some cases

where a court will disregard the corporate entity and allow a creditor or judgment holder to reach through the corporation to the personal assets of its principals.
A) This is called piercing the corporate veil and may result in significant liability for the corporation's principals.
B) Ultimately, the law provides a fairness standard for when the corporate veil should be pierced.
C) Business owners and managers can limit liability and control risk by understanding the circumstances under which a court will pierce the corporate veil.
Business
1 answer:
Triss [41]3 years ago
6 0

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:

  1. "unity of interest and ownership": interest of the shareholders doesn't stand together anymore.
  2. "wrongful conduct": illegal or wrongful actions by the directors or shareholders.
  3. "proximate cause": as a result of the illegal or wrongful actions, other parties were harmed.

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$78.56 x .2 = 15.712

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Judy acquired passive Activity A in January 2013 and Activity B in July 2014. Until 2018, Activity A was profitable. Activity A
Crazy boy [7]

Answer:

Judy may deduct $54,000 of the net losses.

Explanation:

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7 0
2 years ago
A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finis
Nataly_w [17]

Answer: 130 days

Explanation:

The Cash Conversion Cycle is a measure that attempts to show how many days on average it takes a company to convert resources into cash.

It is calculated with the following formula,

= Days of Inventory Outstanding + Days of Sales Outstanding - Days of Payables Outstanding

Where,

Days of Inventory Outstanding is the amount of days it takes to convert inventory to sales

Days of Sales Outstanding is the amount of time it takes debtors to pay the company for goods they bought and,

Days of Payables Outstanding is the time it took the company to pay for the goods it bought

Plugging in the figures we have,

= 100 + 60 - 30

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7 0
3 years ago
In 2012 the change in business inventories is -$70 billion and GDP is $200 billion. Final sales in 2012 Group of answer choices
blsea [12.9K]

Answer:

are $270 billion

Explanation:

Change in business inventories in 2012 = -$70 billion

GDP of 2012 = $200 billion

Final sales in 2012 = GDP - Change in inventory

Final sales in 2012 = $200 billion - (- 70 billion )

Final sales in 2012 = $200 Billion + 70 billion

Final sales in 2012 = $270 billion

Hence proved that the correct answer is $270 billion

7 0
3 years ago
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