1. A unitary California business:

Is exempt from California income and franchise taxation

Cannot include more than one corporation

None of the above

Cannot have income sourced in another state

Is operated as a coordinated enterprise, not as a collection of separate corporations

2. Corporations that have issued "small business stock:"

Are exempt from California income and franchise taxation

Can operate a restaurant, but not a farming business

Benefit from a provision exempting half of the gain from a shareholder's sale of the stock

Can operate a law firm, but not an entertainment business

Benefit from a provision exempting all of the gain from a shareholder's sale of the stock