Failing to keep corporate and personal funds separate is most often a problem in closely held corporations.

Question

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Closely held corporations are often owned by a small group of individuals, such as family members or close business associates. Due to the close relationships and informal management structures, it is easier for owners to mix personal and corporate funds. This can lead to confusion, mismanagement, and legal issues. It is important for owners of closely held corporations to establish clear financial boundaries between personal and corporate finances.

Failing to Keep Corporate and Personal Funds Separate Is Most