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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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In economics, if a good is inelastic,
Mariulka [41]

In economics, if a good is inelastic, then <u>its supply or demand is not sensitive to price changes. </u>

Changes or fluctuations in market prices does not affect the supply and the Demand of inelastic goods.

<h2>Further Explanation; </h2>
  • Inelastic goods, are types of goods whose demand and supply is not affected by changes in market prices. That is an increase or decrease in market price does not affect their supply or demand.
  • When the price of an inelastic good changes, its supply and demand is unaffected.
  • Examples of such goods include, water and food. Therefore, for inelastic goods, the consumer buying strength and habits remain the same.
<h3>Demand and supply in determination of market price </h3>
  • Demand refers to the quantity of goods or services that consumers are willing and able to buy at a particular price while supply is the quantity of goods or services that suppliers are willing to supply to the market at a particular price.  
  • One of the factor that determine market prices are the forces of demand and supply, this is based on the ability and willingness of buyers and sellers to undertake selling and buying.
  • Buying and selling occurs at an equilibrium price that is agreed upon by sellers and buyers.  
  • This means the sellers and buyers are willing to exchange a certain quantity of a commodity at this price. Thus, price depends on the demand and supply in the market.
  • However, for <u>inelastic goods</u> such as water and food, the consumer has no option than to buy them at existing prices since they are necessity goods.

Keywords; Inelastic goods, demand and supply, market price.

<h2>Learn more about: </h2>
  1. Demand and supply; brainly.com/question/6749722
  2. Effect of supply and demand on market price: brainly.com/question/3522474

Level; High school  

Subject: Business

Topic: Demand and supply

Sub-topic: Types of goods

8 0
3 years ago
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Relish Corp. is a famous fast food chain in the United States. However, increasing competition affects the company's market. Nic
Gwar [14]

Answer:

Participative leadership style

Explanation:

Path goal theory is a  leadership theory that specifies the leadership style that should be used in an organization to achieve a goal based on the employees and the working environment. The following steps are to be taken based on the path goal theory:

  1. Determine the employee and environmental uniqueness based on their needs.
  2. Selecting a leadership style and adjusting this style based on the employees need.
  3. Focusing on how to motivate the employee to achieve the goal

Participative leadership style is a style in which leaders involves their subordinates by asking them for suggestions before making a decision. This style is best used when subordinates are highly involved and trained.

8 0
3 years ago
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Which of the following statements best explains the purpose of advertising?
VMariaS [17]

Answer:

B. Advertising is about buying the attention of an audience of potential consumers. I hope this helps. :)

Explanation:

7 0
3 years ago
How can organizations manage diversity effectively?
damaskus [11]

Answer:

Sorry me not Know

Explanation:

4 0
3 years ago
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In terms of GNI PPP, excluding Singapore, the wealthiest nations of Southeast Asia are
shutvik [7]
<span>The wealthiest nations of Southeast Asia, excluding Singapore (which is one of the wealthiest countries in the world) are Thailand and Malaysia, with Malaysia being in the 130th position according to GNI (Gross national Income) and Thailand in the 120th position (the higher the number the bigger the GNI). After this it's Indonesia in the 72nd place. </span>
7 0
3 years ago
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