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What is corporate veil?
Concept in the corpoate business world that protects stockholders from being liable for the debts of the business.
A simple way of understand this is that stockholders can ONLY lose what they invest; creditors of a business CANNOT go after the stockholders for the business's liabilities.
Basically a business can rack up a bunch of debt, go under, and not have pay the difference owed to creditors after liquidating.
This concept does NOT apply to family owned business AKA non-corporations.
The corporate veil is a motherfucker. Lets corporations that go under get away scott free.
corporate veil - video
