Final answer:
The corporate veil separates the owners and operators of a company from the company. It prevents a person from saying that the company’s obligations, liabilities, rights or property are the obligations, liabilities, rights or property of the owners or operators, shareholders, or members. Option D is correct.
Step-by-step explanation:
The corporate veil is a legal concept that separates the owners and operators of a company from the company itself. It prevents a person from saying that the company’s obligations, liabilities, rights or property are the obligations, liabilities, rights or property of the owners or operators, shareholders, or members.
The corporate veil is important because it provides protection to individual owners of a company. In the event that the company faces financial or legal issues, the owners are not personally liable for the company's debts or obligations. This means that their personal assets cannot be used to satisfy the company's liabilities.
For example, if a company goes bankrupt, the owners would only lose the money they had invested in the company, and their personal assets such as their house or car would not be at risk. The corporate veil allows owners to take risks in their business ventures without fear of personal financial ruin.