1. A corporation generally does not itself pay taxes on income; it only acts as a pass-through to its shareholders who pay taxes on the corporations income.

A) True B) False

2. Failure to follow corporate formalities or to adequately capitalize a corporation may subject stockholders to personal liability.

A) True B) False

3. In a limited partnership, a limited partners liability for debts of the limited partnership is limited to her capital contribution.

A) True B) False