Question 4

If the shareholders of a corporation utilize corporate funds to directly pay their personal bills, then what would most likely happen?

		The corporation would always shield the shareholders from liability
		The corporation would be converted to a sole proprietorship
		The corporation would be ousted from the country
		The shareholders would be held liable for the debts of the corporation

Question 5

A legal frolic is a minor deviation from the employers purposes.

True

False

Question 6

Which of the following describes an agency agreement formed by ratification?

		If the principal and agent, prior to the agent doing something, agrees to it
		If the principal, after the agent does something on behalf of the principal, agrees to it
		If a guardian ad litem is appointed in a court of law
		If the principal negligently leads a third party to believe that another person is his or her agent