A new mall is opening by next 6 month and you have decided the time to open a new business by yourself. You prepared the The Style Shop comprehensive business plan. You found out that you need a bigger capital, and you need to decide the form of ownership for your business, be it a corporation or sole proprietorship.

(1) What advantages or disadvantages are there to each choice? (5 marks)

(2) Assuming that you intend to form a corporation and you want to issue preferred stocks in addition to common stocks. What will be your purpose/s of issuing preferred stocks?