1. What is the principal advantage of the corporate form of business organization? Discuss the importance of this advantage to the owner of a small family restaurant. Discuss the importance of this advantage to a wealthy entrepreneur who owns several businesses. 2. How does being a limited partner in a business enterprise differ from being a stockholder, assuming the same percentage of ownership? 3. What are some of the disadvantages of (a) a sole proprietorship? (b) a partnership? (c) a limited liability company (LLC)? 4. What kind of corporation benefits from the graduated income tax? 5. In general, what are the principles on which the Modified Accelerated Cost Recovery System (MACRS) is based? 6. Interest on Treasury securities is not taxable at the state level, whereas interest on municipal securities is not taxable at the federal level. What is the reason for this feature? 7. Are individual tax rates progressive or regressive in the sense of increasing or decreasing with income levels? 8. If capital gains were to be taxed at a lower rate than ordinary income, as has been the case in the past, what types of investments would be favored? 9. The method of depreciation does not alter the total amount deducted from income during the life of an asset. What does it alter and why is that important? 10. If the owners of a new corporation are very few in number, does becoming an S corporation make sense for tax purposes? Explain