1. What do primary liability and vicarious liability have in common?
a. A corporation is subject to accountability for both.
b. A corporation cannot be assessed for either using the identification theory.
c. Both require the directing mind to share liability from the corporation.
d. Both are irrelevant to actual or apparent authority.
2. The exercise of which of the following is required by a duty owed by directors or officers that compares them to a reasonably prudent person in comparable circumstances?
a. honesty, skill, and care
b. diligence, honesty, and fairness
c. diligence, skill, and care
d. prudence, fairness, and honesty
3. What is the legal term for the corporate practice of paying the litigation expenses of officers and directors for lawsuits related to corporate affairs?
a. compensation
b. Indemnification
c. ratification
d. surety