1.A contract entered into by a minor is

void

voidable

binding

illusory

2. A creditor of a sole proprietorship may seek recovery only from business assets of the sole proprietorship, not from personal assets of the sole proprietor.

True

False

3. Which of the following is true regarding any duties of controlling shareholders in relation to control of a corporation?

Controlling shareholders owe no duties other than to maximize their own wealth.

Controlling shareholders generally have a duty to control the corporation in a fair, just, and equitable manner, known as the standard of entire fairness.

Controlling shareholders may act to maximize their own wealth only so long as they do not intentionally harm and exhibit bad faith toward minority shareholders, a standard known as minority shareholder respect and fair dealing.

Controlling shareholders must appoint minority shareholders to vote a certain percentage of their shares in instances in which the minority shareholders demand that right.