1) Which of the following statements about a corporation is NOT correct?

a. The executive management group of a corporation is responsible to its board of directors.

b. A corporation has its objectives decided by a board of directors.

c. The directors of a corporation have a legal responsibility to make sure the corporation acts in the shareholders' best interests.

d. The shareholders of a publicly listed corporation regularlyparticipate in the day-to-day management of the business.

2) The liability of shareholders in 'limited liability' companies means:

a. creditors of a company can call upon the shareholders in the case of company default to contribute an amount based only on the current market price of the shares.

b. shareholders are only liable for any amount that is unpaid on the shares of a company.

c. in the event of company default, the creditors have no claim on the shareholders for any contribution.

d. shareholders do not have a right to participate directly in the day-to-day management of a company.

3) Which of the following statements regarding companies is NOT correct?

a. A company is a discrete legal entity.

b. Since shares represent ownership in a company, ownership cannot be readily transferred to new owners for a large publicly listed company.

c. A company has a potentially unlimited life.

d. The shareholders' liability is limited.