Walter Bradham,the owner of Bradham Corporation muddled his personal finances with his business accounts.Following a suit into the financial irregularities at Bradham Corporation,a court subjected the Corporation to the decision of piercing the veil.Which of the following course is the court most likely to take in this case?
A) It will convert Bradham Corporation into a separate legal entity.
B) It will dissolve the corporation into a sole partnership under Bradham.
C) It will change Bradham's liability in the business to one that of a limited partner.
D) It will hold that Bradham has no personal liability for Bradham Corporation's debt.

Question

Quizplus · Accepted Answer

Piercing the corporate veil means the court disregards the corporation's separate legal entity status to hold the owner personally liable for the business's debts and obligations. This is likely when the owner has not maintained a clear separation between personal and business finances.

Walter Bradham,the Owner of Bradham Corporation Muddled His Personal Finances