Discovering that optimums pays for harold-dorothy mortgage

Assignment Help Operation Management

Reference no: EM132200162

Harold and Dorothy own all of the shares of Ace Corporation. Robert, Ace's landlord, sued Ace for unpaid rent. Robert received a $10,000 judgment against Ace. When Robert tried to collect on the judgment, he discovered that Ace Corporation had no assets. He then discovered that Harold and Dorothy no longer operate Ace Corporation. They now operate Optimus Corporation as the only shareholders. Harold and Dorothy had no assets in their names. However, upon further investigation, Robert discovered that Optimus had numerous assets. He reviewed the financial documentation, discovering that Optimums pays for Harold and Dorothy's mortgage, medical bills, and grocery bills. Can a court pierce the corporate veil? Discuss.

Reference no: EM132200162

Questions Cloud

Delivery of products called for under their contract : Very Big Company, Inc. and Smaller Company, LLC are locked in a dispute over the delivery of products called for under their contract.

Fidelity mutual fund charges a one-time : Fidelity Mutual Fund charges a one-time 6.8% upfront load plus reports an expense ratio of 1.24%.

What price profit maximising monopolist charge for vaccine : What price would a profit maximising monopolist charge for a vaccine? What are the monopoly profits on the vaccine? What is the efficient outcome.

What is the value of the firm : The debt has an annual coupon of 8%. The tax rate is 34%. What is the value of the firm?

Discovering that optimums pays for harold-dorothy mortgage : He reviewed the financial documentation, discovering that Optimums pays for Harold and Dorothy's mortgage, medical bills, and grocery bills.

What is daniels wacc : The bonds are currently selling at 99% of face value. The company's tax rate is 34%. What is Daniels WACC?

Book value of asset : An asset fitting into the 7-year MACRS category was purchased 2 years ago for $105,000. The book value of this asset is now

Seminar called working at peak performance : Research Organisation (Hawkeye Research) has become interested after attending a Seminar called “Working At Peak Performance” (WAPP).

How are insurance companies able to predict : How are insurance companies able to predict their losses from claims accurately enough to let them price their policies such that they will make profit?

User Account

All Pages