1- Officers and senior executives, who are responsible for the day-to-day management of the corporation, owe all but one of the following duties. Which one?

a.Duties similar to those of directors.

b.Fiduciary duty, to the shareholders.

c.Duty of disclosure, to the corporation.

d.Duties of care and competence, to the corporation

e.Fiduciary duty, to the corporation.

2- Which one of the following statements about "limited liability" isincorrect?

a.Sometimes the courts "lift the corporate veil" and hold the principals of the corporation liable for the obligations of the corporation.

b.A corporation's suppliers will not be successful in litigation against the shareholders of the corporation regarding unpaid accounts.

c.The limited liability protection offered by incorporation shields shareholders from personal liability for torts committed by employees of the corporation.

d.Banks often obtain personal guarantees to avoid the protection offered by the principle of limited liability.

e.TheSalomoncase shows that the owner of a "one-man company" does not have the limited liability protection normally offered by the corporate form of business organization.