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CIMAPRA17-BA4-1 Exam - Topic 8 Question 109 Discussion

Which of the following are cases where the veil should be lifted? Select ALL that apply.
D) The red company - Continues to trade despite being having small debts.
A) The pink company - Failed to disclose the full company name on official documents.
B) The orange company - Continues to trade even though it knows it is in irrevocable debt
C) The white company - An investigative journalist reveals that the company has been deliberately avoiding tax.
E) The black company - Trades with a company based in a country experiencing civil war.

CIMAPRA17-BA4-1 Exam - Topic 8 Question 109 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 109
Topic #: 8
[All CIMAPRA17-BA4-1 Questions]

Which of the following are cases where the veil should be lifted? Select ALL that apply.

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Suggested Answer: D

by Junita at Mar 20, 2025, 01:08 PM

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Loren
7 months ago
E seems a bit extreme, but I guess it could be risky.
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Ty
7 months ago
C is a clear case, no doubt about it.
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Stefania
7 months ago
I think B should be included too.
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Lashawn
8 months ago
Wait, how does D even count? Small debts aren't a big deal!
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Bernardo
8 months ago
A and C definitely apply here.
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Haydee
8 months ago
D seems a bit tricky; small debts might not be enough to justify lifting the veil, right?
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Adelle
8 months ago
I practiced a similar question where we had to identify cases of misconduct. I feel like C is definitely a case for lifting the veil.
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Oliva
8 months ago
I'm not entirely sure, but I think B is a strong candidate since knowingly trading while in debt seems risky.
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Juan
9 months ago
I remember discussing how the veil can be lifted in cases of fraud or misrepresentation, so A and C might be relevant here.
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Joaquin
9 months ago
Okay, I've got a strategy - I'll go through each option and evaluate whether the circumstances justify lifting the corporate veil based on what I've learned in class.
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Deja
9 months ago
I'm a bit confused by the wording of some of these options. I'll need to re-read the question and think it through step-by-step.
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Kiera
9 months ago
The key here is to identify situations where the corporate veil should be lifted. I'll focus on the specific details provided for each company.
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Shawn
9 months ago
Hmm, I'm a bit unsure about some of these cases. I'll need to think through the legal principles carefully.
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Elenor
10 months ago
This seems like a pretty straightforward question, I think I can handle this one.
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Stefany
1 year ago
I agree with the other candidates. Lifting the veil for those shady orange and black companies is a no-brainer. Although, I have to say, the pink company sounds more like a fashion label than a serious business.
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Oretha
1 year ago
I think we can all agree that the orange and black companies are the ones that need to be looked into.
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Clay
1 year ago
Yeah, those companies are definitely shady. The pink company does sound more like a fashion label though.
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Rosalind
1 year ago
I agree, the orange and black companies definitely seem like they need the veil lifted.
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Fabiola
1 year ago
Haha, the red company must be running on fumes if they're still trading with small debts. But hey, at least they're being honest about it, unlike those tax-dodging white company jokers.
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Carissa
1 year ago
Hmm, I'm not sure about D. Small debts don't seem like enough to warrant piercing the veil. But the other options definitely seem valid to me.
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Sanjuana
1 year ago
Yeah, A, B, C, and E definitely raise some red flags that warrant lifting the veil.
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Willodean
1 year ago
I agree, D does seem less severe compared to the other options.
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Wendell
1 year ago
I'm not sure about D and E though. They seem like they could be risky, but not necessarily cases where the veil should be lifted.
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Van
1 year ago
I think the correct answers are B, C, and E. Lifting the corporate veil is justified when a company is insolvent, evading taxes, or engaging in risky international trade during conflict.
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Samira
1 year ago
I'm not sure about the pink and red companies though.
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Buddy
1 year ago
Yes, the black company trading in a country at war is a risky situation that justifies lifting the veil.
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Aleisha
1 year ago
I think the white company should also have the veil lifted for tax evasion.
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Julio
1 year ago
I agree, the orange company should definitely have the veil lifted for trading while in debt.
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Cordie
1 year ago
I agree with Brett. Those companies are clearly engaging in unethical practices.
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Brett
1 year ago
I think A, B, and C are cases where the veil should be lifted.
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