Tony and Tim Are Shareholders of a Closely Held Corporation

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.