Answer two of the questions below as true or false.Explain or expand on your answerina minimum of few additional sentences.

Please pay attention to your spelling and grammar! Please note - Be careful to use own words when describing your answers! Do not cut and paste from any website. Answers them in own words.

1.Corporations have perpetual existence.

2.The most common form of business ownership is the corporation.

3.To be a close corporation, the business must be small, with no more than 20 owners and no more than $500,000 in gross annual income.

4.Limited liability is a major advantage of a partnership as compared to a corporation.

5.Generally, a joint venture is a partnership created for one limited purpose.

6.Alan, a dentist, and his wife Martha, an attorney, can protect their personal assets with limited liability from their business dealings by creating and operating a professional corporation together.

7.A partnership is a taxable entity, separate from the partners.

8.Corporations have a distinct advantage over other forms of business organization in the area of taxation.

9.Franchise fees can be costly, but they are usually payable over a number of years, after profits are generated from the business.

10.A limited liability company, unlike a Subchapter S corporation, can have members that are corporations, partnerships, or nonresident aliens.

11.To form an LLC, a charter and an operating agreement must be filed with the Secretary of State in the jurisdiction where the business will operate.

12.The Federal Trade Commission will not allow the sale of franchises that are unfair to the franchisee.

13.Filings are required in order to form and operate a limited liability partnership.

14.A "socially conscious organization" is a non-profit organization that pledges to use 10% of its revenues to benefit environmental or social causes.

15.To become a "socially conscious organization," typically three-fourths of the investors must approve, and they must undergo a certification process.

116. Debra and Lawrence have an equal partnership. This year, after expenses, the partnership had a profit of $200,000. Debra and Lawrence will each pay taxes on whatever they receive from the partnership.

17. Rachel and Cyndi started a retail business called Zebra Toy Company. The business is operated as a partnership. Under partnership law Rachel is personally liable for any business contracts, business debts and negligent acts committed or entered into by Cyndi.

18.James was a partner in a large firm. He died unexpectedly. His spouse, Chris, wanted to take over for James in the partnership and was well qualified to do the work. If Chris is the sole heir, Chris is entitled to the value in the partnership, but not to become a full partner.

19.Jill was a limited partner in a retail business that was sued by a customer who fell in the store. The customer claimed the business was negligent in caring for its floors. Jill has no potential liability to the customer.

20.The form of business ownership that is the most easily transferable is the limited liability company.

21. The Federal Trade Commission (FTC) requires that the seller of a franchise give the potential buyer an offering circular and audited financial statements.

22. Harold and Zack have pooled their money together to buy real estate but have filed no formal papers to form a business. Harold, a lawyer, handles all the legal matters and Zack, a real estate broker, finds buyers for the property they have subdivided. Harold and Zack are engaged in a partnership.

23. Martin, Leah, and Pablo are considering forming a business. They should consider ease of creation and operation, personal liability and taxation in making a choice of organization.

24. Limited partnerships have at least one general partner, who has unlimited liability but the right to manage, and at least one limited partner, who has limited financial liability but few management rights.

25. A franchise is another term for a joint venture.

26. A franchisee may be a limited liability company or a corporation or any other form of business.

27.Shareholders meet annually to elect the board of directors of a corporation.

28. The board of directors of a corporation appoint officers who manage the daily affairs of the corporation