1.) A business organized as a corporation a. Is not a separate legal entity in most states b. Requires that stockholders be personally liable for the debts of the business c. Is owned by its stockholders d. Has tax advantages over a proprietorship or partnership 2.) Buying assets needed to operate a business is an example of a(n) a. Delivering activity b. Financing activity c. Investing activity d. Operation activity 3.) Henson Company began the year with retained earnings of $350,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson