Identify and give the basic characteristics of each of the following specialized types of corporations
a. Professional corporations
b. Public corporations
c. Nonprofit corporations
a . Used by doctors, dentists, lawyers, accountants, or other duly licensed professionals and formed much the same as ordinary business corporations.
b. Formed to administer a unit of government (cities, towns) or created by the government to conduct public business (TVA, postal service).
c. Usually private corporations, operate not for profit, dividends not paid, follow corporation statutes (state), individual members not personally liable. These corporations may make a profit, but it may not be distributed to its members, directors, or officers; the profit must be used for the charitable, educational, or scientific purposes for which the corporations were formed.
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Which of the following is true of tort liability for principals and agents?
A) A principal is responsible for the tortious conduct of an agent irrespective of the scope of his or her authority. B) An agent is fully liable for his or her tortious conduct while on duty for the principal. C) An agent is liable for the principal's tortious conduct if he or she participates in it. D) An agent and a principal cannot be held responsible for the same tort.
In which of the following cases can the alter ego doctrine be invoked?
A) when shareholders bring a lawsuit on behalf of the corporation after the corporation failed to do it itself B) when unpaid creditors are trying to collect from shareholders who owe a debt to the corporation C) when there is a mismanagement of stocks by the board of directors D) when shareholders are trying to collect for fraud committed by a third party