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Contents  The Legal Environment of Business, v. 1.0   21.3 The
Corporate Veil: The Corporation as a Legal Entity  Learning
Objectives    1. Know what rights a corporate “person” and a
natural person have in common.   2. Recognize when a corporate
“veil” is pierced and shareholder liability is imposed.   3.
Identify other instances when a shareholder will be held
personally liable.  In comparing partnerships and corporations,
there is one additional factor that ordinarily tips the balance
in favor of incorporating: the corporation is a legal entity in
its own right, one that can provide a “veil” that protects its
shareholders from personal liability.  Figure 21.1 The Corporate
Veil  This crucial factor accounts for the development of much
of corporate law. Unlike the individual actor in the legal
system, the corporation is difficult to deal with in
conventional legal terms. The business of the sole proprietor
and the sole proprietor herself are one and