These are business law questionnaire:

16. A court is most likely to disregard the corporate entity and hold shareholders personally liable when:

a. The owner-officers of the corporation do not treat it as a separate entity.

b. A parent corporation ceates a wholly-owned subsidiary to isolate the high-risk portion of its business in the subsidiary.

c. A sole proprietor incorporates his/her business to limit liability.

d. One person owns all the shares of stock.

17. James orally agrees to sell Mike his lake house for $150,000. Mike wites a letter to James confirming the sale by identifying the parties and the essential terms of the agreement and Mike signs the letter.

a. This letter satisfies the writing requirement of the Statute of Frauds and, they both Mike and James, cannot use the Statute of Frauds as a defense.

b. Mike can use the Statute of Frauds as a defense if James sues for specific performance.

c. James can use the Statute of Frauds as a defense if Mike sues for specific performance.

d. Two of the above.

18. Sam and Sue are partners, and they desire to admit Hilary to the partnership. Hilary contributes $5,000 as her capital contribution. Hilary:

a. would have unlimited personal liability for debts that were incurred by the partnership before Hilary become a partner.

b. would b eliable for preexisting debts only to the extent of her capital contribution but no personal liability.

c. would have no liability for pre-existing debts.

d. none of the above.

19. Which of the following is least likely to be considered a security under the Securities Act of 1933?

a. General partnership interests.

b. Limited partnership interests.

c. Stock options.

d. bonds.