1. Which level of government is responsible for issuing charters for most corporations? a. city government b. federal government c. county government d. state government 2. What is an advantage of the LLC form of business? a. It is a corporate entity that avoids federal corporate income tax. b. It does not have to register with state government. c. It can transfer ownership easier than a corporation. d. It can sell additional shares of the LLC without any individual approvals. 3. What is the role of stockholders in running the business of a corporation? a. to decide on operating hours of the entity b. to elect the board of directors c. to appoint a CFO d. to sign the tax returns of the corporation 4. The stockholders of a corporation: a. have the power to act for the business unless specifically prohibited by the corporate charter. b. are generally liable for the debts of the corporation. c. can sell their shares of stock without permission from other stockholders. d. are forbidden to be employees of the corporation. 5. In a corporate organization, the stockholders: a. must pay federal income tax on their proportional shares of profits reported by the corporation. b. have the right to surrencler preferred stock to the corporation at any time for a payment equal to the par value of the stock. c. hire the corporate officers. d. are entitled to a proportionate share of dividends declared on their classes of stock. What reasons may Lucia use to support their decision to incorporate? a. double taxation of income b. protection of personal assets and limiting their individual liability c. paying dividends to themselves d. none of the above