Which Statement Best Describes the Circumstances in Which a Court

Multiple Choice

Which statement best describes the circumstances in which a court will disregard the separate existence of a corporation and impose liability on a shareholder for obligations owed by the corporation to a creditor? A court will impose liability on a shareholder

A) when a business has been incorporated to do something or facilitate the doing of something which is illegal or improper, like fraud.
B) when a corporation does not have sufficient assets to meet its reasonably foreseeable liabilities resulting from carrying on its business.
C) when the creditor is an individual who really needs the money and imposing liability on the shareholder is the only way to ensure that the individual obtains relief.
D) when the corporation has breached its contract with the creditor.
E) in no circumstances.