5) Which of the following is a STRENGTH of the sole proprietorship form of organization? You...

5) Which of the following is a STRENGTH of the sole proprietorship form of organization? You are identifying a strength, not a weakness.

		Profits are subject to one level of taxation.
		Owner faces LIMITED liability.
		Shares of stock make ownership easily transferable.
		Profits are subject to two levels of taxation.

6) Which of the following is a WEAKNESS of the corporate form of organization? You are identifying a weakness, not a strength.

		Profits are subject to one level of taxation.
		Profits are subject to multiple levels of taxation.
		Owner faces LIMITED liability.
		Owner faces UNLIMITED liability

7) Which of the following is a WEAKNESS of the sole proprietorship form of organization? You are identifying a weakness, not a strength.

		Profits are subject to one level of taxation.
		Owner faces LIMITED liability.
		Owner faces UNLIMITED liability.
		Low organization costs.

8) What does the concept of "limited liability" really mean with regard to an investor in ANY limited liability organization? Your answer must apply to ALL limited liability organizations.

		The personal wealth (home, car, etc.) of the owner/investor/member is at risk.
		The profits of the entity are subject to only one layer of tax.
		The organization cannot be sued for industrial accidents.
		The owner/investor/member cannot lose more than they originally invested in the business.

Expert Solution

jeff jeffy answered 1 year ago

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