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.

See also: Microschool | Kinkiness | Saggi | Nani | Erk and jerk

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