35. Which of the following was one of the issues that was resolved by the decision in Salomon v.

Salomon Ltd., [1897] A.C. 22 (H.L.)?

a. whether incorporation can be undertaken to limit risk of business bankruptcy

b. whether shareholders are prohibited from becoming highly protected creditors of the company

c. whether companies with few shareholders could be recognized as separate legal entities

d. whether shareholders are totally responsible for their own as well as the entity's obligations

37. Jasmine is the sole shareholder of FashionPlusYou Inc., which is planning to borrow $100 000

from the bank to finance a second store location. What is Jasmine's legal position should

FashionPlusYou Inc. default on the loan?

a. She and the corporation are jointly liable for the debt.

b. She has no personal liability with respect to the debt.

c. She and the corporation are jointly and severally liable for the debt.

d. She can be personally sued by the bank but only if FashionPlusYou Inc. defaults on the loan.

38. Which of the following is a distinguishing feature of a widely held or public corporation?

a. They are exempt from most of the obligations of security legislation.

b. Letters patent are filed in each jurisdiction.

c. Shares are normally traded on the stock exchange.

d. Articles of association are filed in each jurisdiction.