Final answer:
The legal doctrine of 'piercing the corporate veil' is applied if corporation owners do not maintain separation between business and personal finances, potentially holding them personally liable.
Step-by-step explanation:
If the owners of a corporation fail to maintain a formal legal separation between their business and their personal financial affairs, the court will apply the legal doctrine of piercing the corporate veil. This concept allows the courts to hold the company's shareholders or directors personally liable for the company's actions or debts. This is typically done when the corporation's owners have committed fraud or other wrongful acts, or when the company is just an alter ego for the personal dealings of its owners.
By contrast, respondeat superior is a doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, the Business Judgment Rule protects business managers and directors as they make business decisions, and The Rochdale Principles are a set of ideals for the operation of cooperatives.