1. A business organized as a separate legal entity is a a. corporation b. proprietor C. government unit. d. partnership 2. Which of the following is not an advantage of the corporate form of business organization? a. No personal liability b. Easy to transfer ownership C. Favorable tax treatment d. Easy to raise funds 3. Borrowing money is an example of a(n) a. delivering activity b. financing activity C. investing activity d. operating activity. 4. Debts and obligations of a business are referred to as a assets b. equities c. liabilities d. expenses 5. Dividends are reported on the a. income statement. b. retained earings statement. c. balance sheet. d income statement and balance sheet