Katie Kuric is the only shareholder,director,and officer of two corporations,Multimedia Corporation and Kuric Network Television Corporation (KNT).Multimedia produces television shows and movies.KNT broadcasts television programming on cable.KNT purchases much of its TV programs and movies from Multimedia.KNT often pays Multimedia for the TV shows and movies more than a year after payment is due,without being required to pay interest or a late payment penalty.What risk is Katie taking by allowing KNT to pay Multimedia late?

Question

Quizplus · Accepted Answer

If Multimedia's creditors are being defrauded because KNT is consistently being late in paying,then Katie runs the risk of KNT's veil being pierced and KNT being held liable for Multimedia's debts.

Katie Kuric Is the Only Shareholder,director,and Officer of Two Corporations,Multimedia