1. All of these are true regarding sole proprietorships, except:

a.            A sole proprietorship is a business owned by one person.

b.            A sole proprietorship is a separate entity for legal or tax purposes.

c.             In a sole proprietorship assets and liabilities of the owner must be kept separate from the business.

d.            In a sole proprietorship business income is taxed at the personal tax rate.

2. All of these are true regarding partnerships, except:

a.            A partnership has limited liability.

b.            A partnership has limited life.

c.             A partnership is not taxed as a separate entity.

d.            A partnership is similar to a proprietorship.

3. A partnership agreement specifies:

a.            How much the owners will invest.

b.            The continuous life of the partnership.

c.             The number of stocks issued and outstanding.

d.            The articles of incorporation.