1. Carey, the owner of a corporation, uses the business checking account to pay his personal bills. He also makes business deals knowing the business cannot pay the invoices. If he is sued by one of his creditors, which of the following courses of action is most likely to be taken by the court?

1. Pierce the corporate veil.
2. Apply the business judgment rule.
3. Terminate the corporation.
4. Impose the Rochdale Principles.

2. Which of the following is true of the Securities Act of 1933?

1. It guarantees the economic merits of any investment opportunity.
2. It prohibits full disclosure of all material facts about the investment opportunity to offerees before they invest.
3. It forbids any interstate offering of a new security until a registration statement has been filed with and approved by the Securities and Exchange Commission.
4. The Securities and Exchange Commission has repealed the 1933 Acts prescribed relationship between solicitation or sales of a security and the registration process.