1. Identify the advantages and disadvantages of being a limited partner.

2. Compare a partnership and corporation based on the following categories:

1. Ease of Formation

2. Ownership & Control

3. Transferability of Interests

4. Taxation

3. Define the terms dividend and plowback. Speculate as to why a corporation and its shareholders would prefer to implement plowback instread of issuing a dividend?

4. Explain cumulative voting. Distinguish cumulative voting from regular voting. Who benefits when cumulative voting occurs?

5. List the factors that distinguish an ordinary investment from a security.