1. Shareholders of a corporation:

1. Are not personally responsible for the acts of the corporation
2. Are always subject to unlimited personal liability for the acts of the corporation
3. Enjoy the same status as partners in a partnership
4. Enjoy tax-free income in the form of corporate profits
5. Must always be related to each other in a closely-held corporation

2. The major advantage of a corporation is its:

1. Minimal tax rate
2. Exemption from federal taxation
3. Ease of formation
4. Stability as a business entity

3. Which of the following doctrines is used to impose personal liability upon shareholders for corporate obligations?

1. Indoctrination of corporate shareholders
2. Liability for fault under the federal statutes
3. Piercing the corporate veil
4. Assimilation of corporate liabilities doctrine