The corporate veil would most likely be pierced and the shareholders held personally liable if: The corporation has elected S corporation status…

  1. The corporate veil would most likely be pierced and the shareholders held personally liable if:

A. The corporation has elected S corporation status under the irs code

B. The shareholders have commingled their personal funds with those of the corporation

C. An ultra vires act has been committed

D. A partnership incorporates solely to limit the liability of partners

2. Which of the following describes an advantage of the corporation form of doing business?

A, Day to day management is in the hands of the directors

B. Ownership is contractually restricted and not transferable

C. The operation of the business may continue indefinetely

D. The business is free from state regulations

3. Allen owns 500 of the 5000 shares of general stocking corp. General stocking corp plans to issue 600 new shares. If allen have preemptive rights, he may?

A. Buy all 600 shares before anyone else

B. Buy 600 shares at the same price he paid for the original 500

C. Buy 60 shares before anyone else

D.Buy 60 shares at the 10% discount below the cost of the original 500

E. Both C and D

4. The Board of directors may not declare a dividend in which of the following?

A. When the corporation is insolvent

B. When the corporation is merging with another corporation

C, When the corporation has made less than 10% profit over the fiscal year

D. When the corporation issues new stock

E. All of the above are appropriate

5. Which of the following determines when to declare dividends and in what amount?

A. The stockholders

B. The officers of corporation

C. The board of directors

D. Joint vote of shareholders and officers