1. The ultra vires doctrine states that: A. any action of a corporation beyond its stated powers is void B. a corporation is liable for an employee's tort that is connected to the authorized conduct of the employee. C. the corporation may engage in any lawful business D. the board of directors must manage the corporation E. All of the above answers are correct.

2. Paul is employed as a truck driver for Discount Furniture Co. (Discount). While making a delivery for Discount, Paul negligently hit another car. Who is liable for this accident? A. Paul only B. Neither Paul nor Discount because this was an accident, not an intentional injury C. Paul and Discount, because of negligence per se D. Paul and Discount, because of strict liability E. None of the above answers is correct.