1. Directors manage the corporation. True False
2. Generally, LLCs may be taxed the same as a partnership or a corporation. True False
3. There are no formal requirements for the formation of an agency relationship. True False
4. An agent who signs a contract on behalf of an undisclosed principal will incur no liability. True False
5. A foreign corporation is one formed outside the state it is conducting business in. True False
6. Actual authority is created between the principal and the agent. True False
7. A publicly traded corporation is one whose shares may be purchased by anyone. True False
8. Corporate officers are appointed by the shareholders. True False
9. Generally, shares of a closely held corporation are not available to the public to purchase. True False
10. Generally, filing a "Certificate of Incorporation" with the Secretary of State will result in formation of a corporation. True False
11. "Piercing the corporate veil" is a court disregarding the corporate entity & holding a controlling shareholder personally liable. True False
12. Only a principal may create apparent authority. True False
13. Generally, employers are not responsible for torts of an independent contractor. True False
14. An employer is always liable for the torts of an employee. True False