Multiple Choice Questions: ONLY THE ANSWER. NO EXPALIN NEED

2. One of the major disadvantages of a sole proprietorship is A.the simplicity of decision making. B.that there is unlimited liability to the owner. C.low organizational costs. D.low operating costs.

3. One of the major advantages of a sole proprietorship is A.that the owner has limited liability. B.that stock in the proprietorship can be easily transferred. C.that it is exempt from many tax rules that would otherwise apply when employees are hired by the firm. D.low operating costs.

4. The partnership form of an organization A.avoids the double taxation of earnings and dividends found in the corporate form of organization. B.usually provides limited liability to the partners. C.has unlimited life. D.simplifies decision making.

5. A corporation is A.owned by stockholders who enjoy the privilege of limited liability. B.easily divisible between owners. C.a separate legal entity with perpetual life. D.all of these.