1. .. The disadvantages of the partnership form of business organization, compared to corporations, include A. The legal requirements for formation B. Unlimited liability for the partners C. The requirem ent for the partnership to pay income taxes D. The extent of governmental regulation E. The complexity of operations 2. The dissolution of a partnership occurs A. Only when the partnership sells its assets and permanently closes its books B. Only when a partner leaves the partnership C. At the end of each year, when income is allocated to the partners D. Only when a new partner is admitted to the partnership E. When there is any change in the individuals who make up the partnership 3 .. Withdrawals from the partnership accounts are typically not used A. To record compensation for work performed in the business B. To reduce the partners' capital account balances at the end of an accounting period C. To record interest earned on a partner's "capital balance D. To reduce the basic investment that has been made in the business to record a reward for ownership in the partnership 4. :. The partners of Apple, Bere and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2008, were as follows: The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is: A. $25,000 B. $30,000 C. $37,500 D. $75,000 E. $90,000