The corporation is viewed as the alter ego of the shareholder-manager when shareholders mix their personal dealings and corporate transactions as if all were personal.

Question

Quizplus · Accepted Answer

This statement is true. The concept of the "alter ego" refers to the blurring of the line between a corporation and its shareholders/management, where their actions and transactions are indistinguishable. This can lead to legal issues and undermine the separate legal identity of the corporation.

The Corporation Is Viewed as the Alter Ego of the Shareholder-Manager