1.From the selections below identify the advantage of sole-proprietorships and partnerships.

A. Unlimited liability

B. Ease of capital formation

C. Income is not taxed twice

D. Mutual agency

2. Nutritech Corporation has 500,000 shares of 7.5%, $100 par value cumulative preferred stock issued with 45,000 shares issued and 40,000 outstanding, as well as 275,000 shares of $1 par value common stock issued and 250,000 shares outstanding. Dividends relative to the preferred stock are three years in arrears. If Nutritech declares a $2,887,500 dividend during the current period, the per share dividend applicable to the preferred and common stockholders is

A. $40.00 and $1.00, respectively

B. $22.50 and $7.95, respectively

C. $7.50 and $1.00, respectively

D. $30.00 and $6.75, respectively