21._____ The Board of Directors of Microsoft, a corporation, voted to distribute after tax

profits of the corporation, to its shareholders. This type of distribution is a:

a. merger

b. derivative

c. dividend

d. quorum

22._____ Officers , as agents of a corporation owe to the corporation and its shareholders,

both the Duty of Loyalty, and the Duty of Care. Which of the following actions

may constitute a violation of the Duty of Loyalty:

a. cheating the corporation on personal expenses

b. engaging in competition with the corporation

c. taking a corporate business opportunity for themself

d. all of the above

23._____ Tom owns ABC Sales, a sole proprietorship. Tom's potential liability for debts of

the business is

a. unlimited

b. limited to the amount of his initial investment, plus any profits

c. limited by statute

d. limited to the amount of his initial investment

24._____ A Judgement entered in Court against a Sole Proprietorship can be collected from

which of the following sources:

a. assets of the sole proprietor

b. assets of the owner, which he earned from the operation of the business

c. assets of the owner, which he acquired before starting the business

d. all of the above