1. The business judgment rule can protect officers or directors from liability to the corporation or its shareholders for a poor decision if there was a reasonable basis for the decision and the decision was made in good faith True False
2. Sal, the owner of Sal's Drugstore, wants to obtain additional business capital but also to maintain control over his business. This can probably best be accomplished by

	a.	borrowing funds.
	b.	forming a corporation and issuing stock.
	c.	forming a partnership and bringing in partners.
	d.	selling the business.

The first step in the incorporation procedure is to

	a.	elect a board of directors
	b.	begin conducting business.
	c.	hold the first organizational meeting.
	d.	select a state in which to incorporate.

1. Two existing companies would like to work together on a new product while maintaining their independence. Expenses, profits, and losses would be shared between the companies. An appropriate business type would be a

	a.	sole proprietorship.
	b.	joint venture.
	c.	merger.
	d.	corporation.