All of the following questions are of the true/false or multiple choice format.Please indicate the correct answer to each question.You need not explain your answer.

1. Title to corporate property belongs to the shareholders because the shareholders own the corporation.

2. If an act is ultra vires, it is beyond the legal authority of the corporation.

3. The City of Chicago would best be described as which of the following?

a. A corporation formed pursuant to the Model Business Corporation Act.

b. A public corporation.

c. A close corporation.

d. A domestic corporation.

4. Which of the following is the basic governing document of a corporation?

a. A charter, after filing.

b. A subscription.

c. By laws

d. Certificate of authority.

5. General Supply owns all the stock of Playne Pencils. A Playne employee commits a tort for which the employer is liable. The suit results in a judgment for $1 million against Playne. Playne's assets total $650,000, but General Supply's assets are in the millions. In which of the following situations would the judgment have to be paid by General?

a. General Supply's board of directors is exactly the same as Playne's.

b. The president of General Supply is also the vice president of Playne.

c. Playne's income and General Supply's income is held in one account.

d. All of the above.

6. Which of the following is untrue regarding closely held corporations.

a. Most of the corporation in the United States are close corporations.

b. Shareholders frequently restrict the transfer of shares to prevent "outsiders" from obtaining the stock.

c. Shareholders usually have little voice in the management and control of the business.

d. Some states have enacted special legislation to accommodate the needs of closely held corporations.