Incorporation will not protect a firm's owners from liability if it is used to perpetrate a fraud,skirt a law,or commit some wrongful act.

Question

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Incorporation provides limited liability protection to a firm's owners, but this protection is not absolute. If the firm is used to engage in fraudulent behavior, evade legal requirements, or engage in other wrongful acts, the owners of the company can still be held liable.

Incorporation Will Not Protect a Firm's Owners from Liability If