In order to prevent a defective corporation from escaping corporate responsibility,a court may hold that the entity is a(n)________.

Question

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Through corporation by estoppel,courts estop (prevent)the corporation from denying its corporate status.Although a court ruling of corporation by estoppel prevents the business from denying corporate status,it does not remedy the error or grant the organization corporate status for conducting future business.

In Order to Prevent a Defective Corporation from Escaping Corporate