1. Which of the following statements is most correct?

a.One of the disadvantages of the sole proprietorship form of organization is that there is unlimited liability.

b.The partnership form of organization has easy transferability of ownership.

c.One of the advantages of the corporate form of organization is that there is no double taxation.

d.One of the disadvantages of the partnership form of organization is that there is double taxation.

2.

Which of the following could explain why a business might choose to organize as a corporation rather than as a sole proprietorship or a partnership?

a.Corporations generally face fewer regulations.

b.Corporations generally face lower taxes.

c.Corporations generally find it easier to raise capital.

d.One of the disadvantages of the partnership form of organization is that there is double taxation.