1. In which of the following organization forms is the owners' legal responsibility for the debt of the business limited to the amount they invested in the business?
a. Cooperative
b. Sole proprietorship
c. Partnership
d. Corporation
2. The projected capital budget of Kandell Corporation is $900,000, its target capital structure is 60% debt and 40% equity, and its forecasted net income is $900,000. If the company follows a residual dividend policy, what total dividends, if any, will it pay out?
a. $540,067
b. $539,933
c. $539,799
d. $540,000
e. $539,866