Final answer:
Misrepresentations to creditors regarding important facts about the financial condition of the company are examples of fraud that could lead to a piercing of the corporate veil.
Step-by-step explanation:
Misrepresentations to creditors regarding important facts about the financial condition of the company are examples of fraud that could lead to a piercing of the corporate veil.
When a company commits fraud by misrepresenting its financial condition to creditors, it can lead to a legal concept called piercing the corporate veil. Piercing the corporate veil allows the creditors to hold the company's owners personally liable for the company's debts.
Therefore, the statement 'Misrepresentations to creditors regarding important facts about the financial condition of the company are examples of fraud that could lead to a piercing of the corporate veil' is true.