Jose, a director of Tech Corporation, learns that Tech has developed a computer chip that is faster than any other computer chip. Jose buys 1,500 shares of Tech stock. He then tells Kim about the new chip, and she purchases 500 shares. Kim is aware that Jose works for Tech Corp. After the new chip is announced publicly, the price of Tech stock increases, and Jose and Kim sell their shares for a large profit. Under the Securities Act of 1934, liability may be imposed upon

	a.	neither Jose nor Kim.
	b.	Jose only.
	c.	Kim only.
	d.	Jose and Kim.

1. A limited partner in a limited partnership can lose her limited liability if she

   	a.	votes on the firms sale or dissolution.
   	b.	invests in a competitor of the firm.
   	c.	meets with prospective clients.
   	d.	participates in the management of the firm.

1. All of the following are reasons a court might "pierce the corporate veil" and hold shareholders personally liable for corporate debts except

   	a.	personal and corporate assets are mixed together.
   	b.	the corporation has not declared a dividend.
   	c.	corporate formalities are not followed.
   	d.	the corporation is not set up to make a profit and is too thinly capitalized.

1. Next Corporation (NC) has 50,000 shares of common stock outstanding, and Lisa owns 500 shares. NC issues 50,000 new shares of common stock. According to her stock certificate, Lisa is entitled to buy an additional 500 shares at the time the new stock is issued, so that she will retain the same percentage of ownership in the corporation. This is an example of

   	a.	participation rights.
   	b.	voting rights.
   	c.	preemptive rights.
   	d.	the right of first refusal.