19. Explosives, Inc. officially states on its Articles of Incorporation that its

Question

19. Explosives, Inc. officially states on its Articles of Incorporation that its purpose is "to engage in any lawful activity for which corporations may be organized under the General Corporation Laws of Michigan." The state of Michigan will reject this statement as too broad and require that the corporation's purpose be more narrowly defined. TRUE FALSE 20.Bilbo owns Trucking, Inc., is a waste disposal business. The only waste Bilbo disposes of belongs to his and his brother's family. Still, Bilbo deducts on his taxes all his gasoline purchases for the family cars, the computers and the home electric bills. A court would likely pierce the corporate veil under the alter ego theory TRUE FAL SE tiple Choice: ns Tn addition

Explanation / Answer

19 ) (False) the answer for the above statement is surely going to be false as the statement states that this statement of purpose would be rejected on the basis that it is broadly defiened. But according to the norms of the state of Michigan and the laws of incorportion the purpose must be clearly and broadly defined so that the main motto of the work and the actual work can be known to the people and the states too. And infact there is no such word limits for the same.

20) (True) the answer for the given question is surely going to be true as Bilbo's Trucking Inc, is a corporate entity and whatever business it does is all under the legal norms of the company but the personal expenses that he deducts under the name of the business is not valid and the court can surely pierce the corporate veil and sue the owner for doing the same. As we know that the company created by the owner has a different identity and it is a different entity than the owner.

  

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