Corporations that elect to operate as Subchapter S corporations have tax advantages, including no double taxation of profits, reduced employment tax liabilities, and the ability to expense personnel salaries. O True O False D Question 8 2 pts Johnny has a corporation and uses his personal credit card on accident to make small purchase for the corporation. All other corporate formalities and proper accounting are followed by the corporation and Johnny respectively. Sue, later sues Johnny's corporation for negligence and wins. Will the transaction mentioned above give the judgement creditor the ability to hold Johnny personally liable for the corporations actions (pierce the corporate veil)? Yes, he comingled funds and so the veil should be pierced Yes, he committed fraud No. you can do whatever you want and not have personal liability No, that is not enough inappropriate activity to justify piercing the veil D Question 9 1 pts Many times, organizations will layer corporations by using holding companies that wholly own subsidiaries below them. This may be done for tax advantages, and also for (to): O pay more taxes ensure more liability exposure O multiple layers of liability protection O commit fraud with no recourse to the victims D Question 10 1 pts The doctrine of respondeat superior, which makes businesses liable for the actions of their employees acting within their course and scope of employment, to corporations. does not apply may apply applies O will not apply no matter what