Asked by Nourhan Ashraf on Jun 13, 2024
Verified
When shareholder-managers pay themselves excessively high salaries or have the corporation pay their personal credit card bills,this is an example of:
A) circumventing a statute.
B) looting.
C) creditor domination.
D) thin capitalization.
Looting
The act of stealing goods, typically during a war or riot.
Shareholder-Managers
Individuals who both own shares in a company and actively manage its operations or participate in strategic decision-making.
Personal Credit Card Bills
Statements issued to credit card holders outlining transactions, payments due, and other account activity for a billing cycle.
- Comprehend the principle of piercing the corporate veil and its resultant effects.
Verified Answer
Learning Objectives
- Comprehend the principle of piercing the corporate veil and its resultant effects.
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