1. Which of the following is true regarding corporations?

A. A corporation is not a separate legal entity.

B. A corporation may not be sued.

C. A corporation is created according to federal law.

D. Shareholders may typically be held liable for debts of thecorporation.

E.The corporation must pay taxes on profits, and shareholdersmust pay taxes on dividends they receive from the corporation.

2. Officers of a corporation are hired by the shareholders. Trueor False?

3.Members of the board of directors of a corporation are electedby shareholders. True or False?