1. Business structure is basically a function of state law. TRUE OR FALSE

2. A corporation is considered a person for most legal purposes. TRUE OR FALSE

3. Bob opens a lemonade stand. He files no paperwork with the government. He is considered a sole proprietor. TRUE OR FALSE

4.Bob and Jim open a restuarant. Unless they file for corporate status, they will be liable for each others debts relating to the restaurant. TRUE OR FALSE

5. Bob and Jim open a restuarant. They file and receive corporate status. As a result, the corporation will not be liable if Bob leaves a wet floor in the restaurant and a customer slips and breaks a leg. TRUE OR FALSE

6. A corporation is double taxed TRUE OR FALSE

7. A partner is liable for the debts of his business partners, and could lose his house and car if his business partner incurrs debt in the business TRUE OR FALSE

8. A partnership suffers double taxation TRUE OR FALSE

9. A Professional Cor[poration enjoys single taxation and limited liability. TRUE OR FALSE

10. Mary and John decide to open a lemonade stand and have successfully formed a corporation for their business. Bob uses the company car for his personal vacation trip to Florida, and uses the corporate checkbook for his own rent payments. (he replaces the $ so its not theft.) Steven slips on a lemon peel and breaks his leg. Steven may sue Mary for negligence and if he wins he can take Mary's 401K savings account money. TRUE OR FALSE