The dissolution of a corporate form,making it back into a sole proprietorship or general partnership,if the court finds that the owner carelessly mixed up personal and business assets or finances is known as:
A) piercing the veil.
B) adverse possession.
C) nonfeasance.
D) easement.

Question

Quizplus · Accepted Answer

The dissolution of a corporate form and reverting it back to a sole proprietorship or general partnership due to the owner carelessly mixing personal and business assets or finances is known as piercing the veil. This refers to a legal concept where a court may disregard the legal entity of a corporation and hold the shareholders personally liable for the actions of the corporation. It is done to prevent individuals from using the corporate structure to avoid personal liability.

The Dissolution of a Corporate Form,making It Back into a Sole