5. Any suit against the business or its employees leads to limited personal liability for the owner of a sole proprietorship a. True b. False 6. Typically, the franchisee determines the territory to be served by the franchise a. b. True False 7. The day to day operation of the franchise business normally is under the control of the franchisee a. b. True False 8. Barron wants to go into the business of architectural design. Among the reasons that might convince barron to set up his business as a sole proprietorship would be a. b. c. d. Its limited liability Its perpetual existence The ease of transferring the business to other family members Its greater organizational flexibility 9. Amy organized, and owns and operates, Build It!, a construction outfit, in the simplest form of business organization. This is a. b. c. d. A limited partnership A limited liability company A corporation A sole proprietorship 10. Deshaun owns Paint This Painting, a sole proprietorship. Deshaun's liability is a. b. c. d. Unlimited Limited to the extent of capital expenditures Limited by state statute and varies from state to state Limited to the extent of his original investment