Tony and Tim Are Shareholders of a Closely Held Corporation

question 83

Multiple Choice

Tony and Tim are shareholders of a closely held corporation that engages in illegal activity. They mixed business and corporate assets regularly. Do Tony and Tim have limited liability?

• A) Yes, because limited liability is absolute.
• B) Yes, because their corporation was closely held.
• C) Yes, because of corporation by estoppel.
• D) No, because closely held corporations never benefit from liability protection.
• E) No, because they used the corporation to engage in illegal and wrongful acts and because they comingled personal and corporate interests.

Understand the motivation behind negotiations.

Identify and explain major strategies in conflict management.

Describe the dynamics of interparty relationships.

Evaluate the role and perception of the negotiation process.

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Definitions:

Remedial

Designed to correct or improve one's skill in a specific subject; educational measures for helping individuals who are falling behind.

Back-To-The-Basics

An educational or philosophical approach that emphasizes traditional teaching methods and fundamental concepts.

Accountability

The responsibility and obligation to account for one's actions and accept the consequences of them.

Demanded

Expressed or signaled an urgent need or desire for something to be provided or performed.