540 | Basic Financial Accounting and Reporting 2021 Edition by NAME: SECTION: SCORE: PROFESSOR: because he can Multiple Choice 1. An ordinary or preference shareholder is similar to a lose no more than the value of the investment. a general partner b. limited partner C. sole proprietor d. nominal partner e stockbroker 2. What is the primary disadvantage of both a sole proprietorship and a partnership that a corporation overcomes? No access to capital b. Taxing complications C. Unlimited liability d. Ease of start-up e. Lack of secrecy 3. A corporation whose stock can be purchased by anyone and is traded in stock markets is known as a(n) a. government-owned corporation. b. close corporation. c. open corporation. d. not-for-profit corporation. a. 4. Shares of 1st Global StratDev stock cannot be purchased in any stock exchange or by just any individual. This means that 1st Global StratDev is a(n) a. partnership b, open corporation. c. family corporation. d. close corporation. 5. When organizing a corporation, the incorporators submit articles of incorporation to a. a judge. b. the Securities and Exchange Commission. c. the National Bureau of Investigation. d. the Board of Investments