Multiple Choice
John,who has a reputation for dishonesty,recently incorporated an investment company to protect himself from liability for his dishonest activities.John makes himself an employee of the company and fraudulently misrepresents an investment to a new customer who invests a large sum of money,which John pockets.A few days later the company goes bankrupt.In this situation,the investor
A) can sue John for breach of fiduciary duty.
B) can move to have the court pierce the corporate veil and sue John directly for fraud.
C) can sue both the company and John.
D) can sue only the company.
E) none of the above
Correct Answer:

Verified
Correct Answer:
Verified
Q20: In both theory and reality,a corporation always
Q21: Florence has $100 000 to invest.She decides
Q22: Briefly describe a professional corporation (PC)and the
Q23: The principle that a corporation has an
Q24: Bond and share certificates in bearer form
Q26: The "charter" is an unsuitable instrument for
Q27: Albert is employed by a large company
Q28: Bill and Ted decide to set up
Q29: Which of the following is included in
Q30: Jim incorporated his small business so that