3. A business formed by two or more individuals who each have unlimited liability for all of the firm's business debts is called a A corporation B. sole proprietorship C. general partnership D. limited partnership E limited liability company 4. A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a A generally partner B. sole proprietor. C. limited partner D. corporate shareholder E. zero partner. = 5. A business created as a distinct legal entity and treated as a legal "person" is called a A. corporation B. sole proprietorship C. general partnership D. limited partnership E unlimited liability company. 6. Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers? A. articles of incorporation B. corporate breakdown C. agency problem D. bylaws E legal liability 7. A stakeholder is: A. a person who owns shares of stock B. any person who has voting rights based on stock ownership of a corporation C. a person who initially founded a firm and currently has management control over that firm D. a creditor to whom a firm currently owes money E. any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm 8. Which one of the following is the financial statement that summarizes a firm's revenue and expenses over a period of time? A. income statement B. balance sheet C. statement of cash flows D. tax reconciliation statement E market value report