19.Which one of the following statements concerning a sole proprietorship is correct?

a.

A sole proprietorship is designed to protect the personal assets of the owner.

b.

The sole proprietorship can continue even after the death of the sole proprietor.

c.

The profits of a sole proprietorship are subject to double taxation.

d.

The owner of a sole proprietorship is personally responsible for all the company's debts.

e.

A sole proprietorship is structured the same as a limited liability company.

20.Which one of the following supports the theory that the value of a firm increases as the firm's level of debt increases?

a.

No theory suggests this.

b.

M&M Proposition I with taxes

c.

M&M Proposition II without taxes

d.

M&M Proposition I without taxes

e.

Static theory of capital structure