Corporate Law and Liability
5 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary purpose of a corporation's creation?

  • To protect the owners' personal assets
  • To circumvent laws and regulations
  • To create a charitable organization
  • To operate for profit and distribute earnings to shareholders (correct)
  • What is the term for the legal separation between a corporation and its owners?

  • Corporate veil (correct)
  • Separation of ownership
  • Corporate liability
  • Legal entity doctrine
  • In what circumstances may the corporate veil be pierced?

  • When the corporation is profitable
  • When the corporation is a non-stock entity
  • When the owners are not involved in the corporation's activities
  • In cases of fraud or mismanagement (correct)
  • What doctrine addresses circumstances when the separation between owners and the corporation should be disregarded?

    <p>Alter ego doctrine</p> Signup and view all the answers

    What is the primary benefit of a corporation's legal entity status?

    <p>Limited liability for owners</p> Signup and view all the answers

    Study Notes

    Corporation Definition

    • A corporation is a legal entity created by law that has rights and liabilities separate from its owners.
    • It can be created to operate for profit, distributing earnings to shareholders, or as a non-stock entity for public good.

    Corporate Veil

    • The corporate veil separates the corporation legally from its owners.
    • The veil can be pierced to assign liability to owners in cases of fraud.

    Doctrines

    • Alter ego doctrine: addresses circumstances when the separation between owners and the corporation should be disregarded.
    • Trust fund doctrine: addresses circumstances when the separation between owners and the corporation should be disregarded.

    Key Concept

    • A corporation is a legal entity with separate rights and liabilities from its owners.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Description

    This quiz covers the basics of corporations, including their legal status, rights, and liabilities. It also touches on the concept of the corporate veil and its limitations.

    More Like This

    Comercio y Sociedades
    10 questions

    Comercio y Sociedades

    GodGivenNeodymium avatar
    GodGivenNeodymium
    Contratto di Società: Guida Completa
    37 questions
    Business Organizations in the Philippines
    16 questions
    Use Quizgecko on...
    Browser
    Browser