The alter-ego theory can be applied to a corporation but not to a limited liability company.

Question

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The alter-ego theory can be applied to both corporations and limited liability companies. It is a legal doctrine that allows a court to disregard the separate legal identity of a company and hold its shareholders or members liable for the company's actions or debts if they have treated the company as their alter ego or alter-identity.

The Alter-Ego Theory Can Be Applied to a Corporation but Not