True or False

1.A limited partner has the same level of liability as any other partner

2.A partnership agreement can allocate the levels of legal liability between partnersfor the partnership's actions

3.Preferential shares in a corporation do not bring with them voting rights

4.A sole proprietor will be taxed at the personal income tax rate

5. As a corporation is a separate person, under no circumstances can the directors,officers and shareholders be held liable for the actions of the corporation

6.Partners are agents of each other

7.Insurance is rarely available for sole proprietorships and partnerships

8.The sale of bonds by a corporation creates an ownership interest in the corporation for the buyer

Multiple choice

9.Which of the following statements are true about closely held corporations

a.The shares cannot be traded freely with the public

b.They are heavily reliant on a well-crafted shareholder agreement

c.All decisions must be unanimous

d.The are generally small businesses but can be large businesses too

e.The are regulated in the same manner as broadly held corporations

10.Which of the following are benefits of carrying on a sole proprietorship

a.It is inexpensive to set-up

b.Protection against liability when carrying on business

c.Business losses can be offset against the owner's income for tax purposes

d.The owner has complete control of the business

e.An owner can hire employees without the same strict level of labour regulation that effects other forms of business