1. Each of the following is an advantage of a sole proprietor legal structure except:
(a) It is easy and inexpensive to form.
(b) The owner has complete control over the business.
(c) The owner gets all the profits earned by the business.
(d) The owner has unlimited personal liability.
2. Each of the following is a characteristic of a general partnership legal structure except:
(a) Partners are not allowed to use personal resources to secure bank loans.
(b) Shared decision making can result in disagreements.
(c) Profits typically must be shared with other partners.
(d) Each partner can be held personally liable for her actions.
3. Each of the following is an advantage of a corporate legal structure except:
(a) Each owner has limited personal liability.
(b) Incorporation makes it easier to access financing.
(c) It is relatively inexpensive to set up and subject to few government regulations.
(d) Because it is a separate legal entity, it exists beyond the lives of its owners.
4. Each of the following is a characteristic of a limited liability company except:
(a) Its owners (members) don’t have to be U.S. residents or citizens.
(b) Profits do not have to be allocated to owners based on percentage ownership.
(c) Each owner has unlimited personal liability.
(d) It does not have to elect a board of directors or hold annual meetings.