The __________ theory applies to the situation in which owners of a corporation have so mingled their own affairs with those of the corporation that the corporation does not exist as a distinct entity.
A) undercapitalization
B) alter ego
C) per se
D) absolute

Question

Quizplus · Accepted Answer

The alter ego theory applies in situations where owners of a corporation have so mingled their own affairs with those of the corporation that the corporation does not exist as a distinct entity. Undercapitalization refers to a situation where a corporation does not have sufficient capital to carry out its business activities. Per se and absolute are not relevant to the given scenario.

The __________ Theory Applies to the Situation in Which Owners