1. All of the following are types of entities formed by companies except:

   1. Corporation
   2. Merchandising Company
   3. Partnership
   4. Sole proprietorship

   2. What is the most common type of company?

   1. Corporation
   2. Franchise
   3. Partnership
   4. Sole proprietorship

   3. A corporation is owned by people called:

   1. Executive
   2. Franchisee
   3. Partners
   4. Shareholders

Which of the following statements is true?

1. 1. Assets are all the items a business owns
   2. Assets are all the items a business owes
   3. Liabilities are all the items a business owns
   4. Liabilities are all the items a business owes