Question

question 5 (2.5 points)
a court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.
true
false
question 6 (2.5 points)
as a general rule, shareholders are responsible for the daily management of a corporation.
true
false
question 7 (2.5 points)
generally, a corporation that is selling all of its assets must obtain the approval of the board of directors and the shareholders.
true
false
question 8 (2.5 points)
on a merger, one corporation inherits all of the rights and liabilities of its predecessors.
true
false

Explanation:

Question 5

The corporate veil piercing doctrine allows courts to hold shareholders liable if corporate privileges are misused for personal gain, so the statement is True.

Shareholders own the corporation but don't manage daily operations; that's the board and management's role, so the statement is False.

Selling all assets is a major corporate action requiring approval from both the board (to propose) and shareholders (to approve), so the statement is True.

Answer:

True

Question 6