Pursuant to the __________ theory,when a corporation is so dominated and controlled by shareholders,officers,and/or directors that the separate personalities of the individuals and the corporation no longer exist and there is a wrongful use of that control,the courts will disregard the corporate entity so as not to sanction a fraud or injustice.

Question

Quizplus · Accepted Answer

The alter ego theory states that if a corporation is so dominated and controlled by its shareholders, officers, and/or directors that it no longer has a separate existence from its owners and there is a wrongful use of that control, the courts will disregard the corporate entity to prevent fraud or injustice. Therefore, the answer is (A) alter ego.

Pursuant to the __________ Theory,when a Corporation Is So Dominated