Question 22 (10 points)

All corporations are created under federal statutes and LLC's are governed by state statutes.

Question 22 options:

	True
	False

Question 23 (10 points)

A shareholder who commingles her own money with corporate money may lose her personal liability protection.

Question 23 options:

	True
	False

Question 24 (10 points)

A corporate board member is protected from personal liability if he exercises good faith, reasonable decision making. This is called the business judgment rule.

Question 24 options:

	True
	False

Question 25 (10 points)

If a corporation and its shareholders engage in fraud it may lead to the piercing of the corporate veil, which can end in the loss of personal liability protection.

Question 25 options:

	True
	False

Question 26 (10 points)

Shareholder rights in corporations are solely conferred by decisions of the Board.

Question 26 options:

	True
	False

Question 27 (10 points)

Limited Liability companies are owned by shareholders and controlled by LLC officers.

Question 27 options:

	True
	False

Question 28 (10 points)

LLC's and corporations are automatically treated the same way by the Internal Revenue Service.

Question 28 options:

	True
	False

Question 29 (10 points)

Jimmy wants to use "Jimmy's Pizza" as his corporate name in the State of Delaware. However, when he runs a name availability check with the state, he is told that name is already taken by another business. He can still use this name so long as the other business is 10 miles away from where he will operate.

Question 29 options:

	True
	False

Question 30 (10 points)

Public securities are exempt from registration with the SEC, so long as they are traded on the New York Stock Exchange, (but not the NASDAQ).

Question 30 options:

	True
	False