9) I recommend to the couple that owns this dog wash to organize their business as an LLC (Limited Liability Corporation). Provide TWO reasons why they would benefit from the LLC form of organization. In other words, provide TWO strengths of the LLC form of legal organization. You are identifying STRENGTHS, not weaknesses. You must identify both correct answers for credit.

		Limited liability -- their personal assets are not at risk.
		One level of taxation -- the LLC is a conduit entity.
		There is a limit on the type and number of shareholders (also known as members).
		Owners (members) face unlimited liability.

10) If an individual forms a sole proprietorship, which nontax factor will be of greatest benefit to the sole proprietor?

		Liability protection.
		Facilitates initial public offerings.
		Minimal time and cost to organize.

11) Distinguish between the PRIMARY and SECONDARY markets for securities (stocks & bonds) by identifying the only correct statement from the following list.

		The PRIMARY market is an "after-market" in which pre-owned securities are traded between investors.
		The SECONDARY market is an "after-market" in which pre-owned securities are traded between investors.
		Transactions in the SECONDARY market are the only time the company issuing the stock or bond receives proceeds from the sale.

12) One side (you might visualize it as the left side) of a balance sheet identifies the assets of a company. That asset side is known as the:

		The operating side.
		The investing side.
		The financing side.
		The limited liability side.