Question

QUESTION 5

1. A court will pierce the corporate veil of a corporation when the corporate privilege is abused for personal benefit.

   True

   False

QUESTION 6

1. As a general rule, shareholders are responsible for the daily management of a corporation.

   True

   False

Answer 1

Answer 5: True

The given statement is true, because the courts will pierce the corporate veil is that a corporation was not setup to make a personal profit.

Answer 6: False

The given statement is false, because shareholders are not responsible for the daily management of a corporation. Shareholders are responsible for electing the board of director for the corporation and setup policies for an organization to achieve their goals.