1) An LLC with two owners is generally treated as a ________ for tax purposes (fill in the bank)

a) Partnership

b) C Corporation

c) Sole Proprietorship

d) None of these

2)Shareholders of a corporation

	a.	Can never be held liable for any action of the corporation for any reason
	b.	Can always be held liable for any action of the corporation for any reason
	c.	Will not be held liable for actions of the corporation if corporate formalities are maintained
	d.	None of the these

3) Which of the following entities has a single level of taxation (taxed once):

	a.	None of these
	b.	C Corporation
	c.	All of the these
	d.	LLC

4) Which of the following entities has limited liability for their owners:

	a.	C Corporation
	b.	None of these
	c.	Partnership
	d.	Sole Proprietorship

5) You are a shareholder of Radio Shack. You want to sue the directors for "running the company into the ground" with their "stupid ideas," which caused the company to go out of business

	a.	None of the these
	b.	The directors are never liable for any reason
	c.	This is a good lawsuit as Radio Shack went out of business due to dumb ideas
	d.	The directors are not liable if they followed the Business Judgment Rule