director. Critics riticis stituti b. interested c. outside d. employed iscu ale.
ID: 432260 • Letter: D
Question
director. Critics riticis stituti b. interested c. outside d. employed iscu ale. 15 refers to a method by which courts hold shareholders individually liable for claims against a corporation. a. Reverse liability b. Piercing the corporate veil c. Upholding the ethical theory d. Unveiling sc a d 16. Which of the following is true regarding the effect of the death of a partner on a general partnership? a. Unless there is an agreement to the contrary, the partnership dissolves upon the death of a partner. b. Unless there is an agreement to the contrary, the partnership ceases to exist 10 days after the death of any partner c. The remaining partners must by operation of law continue the partnership for at least one year. d. Within 90 days the remaining partners may elect to continue the partnership. 17. A is a public offer to all the shareholders of a corporation to buy their shares at a stated price. a. leveraged buy out b. tender offer c. target bid d. mergerExplanation / Answer
15.) Piercing of Corporate Veil refers to the method by which the court holds the shareholder s individually liable for claims against a Corporation.
Explanation:
As per the general rule of Corporate Law , Corporation has a status of Seperate Legal Entity and as such Corporation, and not its Shareholders is liable for its own Contract, Debt and Torts.
Generally Speaking , the Shareholders, Directors, Officers and Employees of the Corporation benefits from the doctrine of Limited Liability, in which none of them liable for the actions taken on behalf of the Corporation. This Limited Liability characteristic of the Corporation is referred to as the ' Corporate Veil'. Though Corporate Veil normally protects the Shareholders, Directors and others from liability for Corporate Debts and Obligation. But when these Individuals abuse or take advantage of the corporate privilages, Court will disregard the Corporate fiction and hold them individually liable. When any person who is aggrieved by these agents of the corporation often seek to recover the damages personallly from the shareholders, directors and officer of the corporation by asking the court to pierce the corporate veil.
16.) Which of the following is true regarding the effect of the death of a partner on a general partnership?
Ans : d) Within 90 days the remaining Partner may elect to continue the Partnership.
Explanation:
A General Partnership is basically an informal Business Organization which is created when two or more people decide to start a business together. The liability of General Partners is not limited to their investment.
Uniform Partnership Act provides regulations governing the dissolution of Partnership when a Partner dissociates like for example when partner dies. Under Uniform Partnership act the partnership automatically continues unless partners take action to dissolve the partnership within 90 days of the dissociation.
17 .A Tender Offer is a public offer to all the shareholders of a corporation to buy their shares at a stated price.
Explanation :
A Tender offer usually occurs when investors is seeking to buy shares from every shareholders of a publicly traded company for a certain price at a certain time. The price offered is usually at a premium to the market price i.e. the price offered per share is higher than the company's stock price, providing the shareholder the greater incentive to sell their shares.
In corporate finance, a tender offer is often called a takeover bid as the investor seeks to take over control of the corporation.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.