Required information 2. There are many options on which There are many options on which type of business entity to form when running a business. There are advantages and disadvantages to each type. Choosing the correct entity will help meet the goals of the business owners. Read the case below and answer the questions that follow. Olivia, who has been sewing since a young age, decided that she would like to open a business called Gowns and Smiles. to make and sell prom and other formal dresses. While starting up, she would like to be the only owner of the business. Further, she does not want to go through a rigorous formation process, pay any fees or worry about making annual business filings for Gowns and Smiles. 2c. Regarding using the name Gowns... Regarding using the name Gowns and Smiles, which of the following is correct? I. It is a trade name. II. It cannot be used because the proprietor's name must be part of the business name of a sole proprietorship. III. Olivia would have to file a doing business as (DBA) certificate to use the name. IV. A sole proprietorship may not have a business name. I and IV III and IV I only I and IIII I and II 2d. Assume that Olivia opens Gowns and Smiles as a sole proprietorship... Assume that Olivia opens Gowns and Smiles as a sole proprietorship. The business grows extraordinarily in the first year and she would like to open a storefront. To do so, she needs more capital. Which of the following capitalization methods would Olivia be able to use? 1. Take out a commercial loan. II. Take out o private loan. ii.. Create an equity security offering. N. Open a commercial line of credit. II and III I, II and III II only I, II and IV I and II 2e. Assume that Olivia opens Gowns and Smiles ... Assume that Olivia opens Gowns and Smiles as a sole proprietorship. The business grows extraordinarily in the first year and she would like to open a storefront. She would also like to add more principals to the business without changing the business structure. Which of the following options are availabie to Oilvia? 1. She can sell equity in Gowns and Smiles. 11. She can take on a limited partner. ii. She can take on a general partner IV. She can take on a limited lisbility pattner. I, II, III and IV II only II and III I, II and IV None of the choices are correct