9. Bob worked for the Walmart. The money he earned as salary is considered what kind of income? a. Passive income. b. Active or Ordinary income c. Deferred income d. Portfolio income. 10. Establishment of a sole proprietorship is not relatively easy. 11. Which of the following entities does not have limited liability? a. General partnership. b. LLC taxed as a disregarded entity. c. S corporation. d. All of the above have limited liability. 12. True/False: Income that is generated from a sole proprietorship, net of expenses, is not subject to income tax and self-employment tax. 13. Each of the following is a characteristic of a sole proprietorship EXCEPT: a. Sole proprietorships are easy to establish but have complex administration. b. An advantage of sole proprietorships is that income flows through and is not subject to double taxation. c. Limited liability is not an advantage of sole proprietorships. d. All income, net of expenses, is subject to self-employment taxes. 14. The most common types of entities in the United States are sole proprietorships, partnerships, LLCs, C corporations and S corporations. 15. True/False: Estate planning is the process of accumulation, management, conservation, and transfer of wealth considering legal, tax, and personal objectives