Choose the correct answer and discuss why 2 other options are incorrect in a few words or sentences:

1. Which of the following are advantages of the corporate form of business ownership?

I. Limited liability for firm debt.

II. Double taxation.

III. Ability to raise capital.

IV. Unlimited firm life.

a.) I and II only.

b.) III and IV only.

c.) I, III, and IV only.

d.) II, III, and IV only.

e.) I, II, III, and IV.

2. A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

a.) General partner.

b.) Sole proprietor.

c.) Limited partner.

d.) Corporate shareholder.

e.) Zero partner.

3. Which one of the following statements is correct concerning the NYSE?

a.) The publicly traded shares of a NYSE-listed firm must be worth at least $250 million.

b.) The NYSE is the largest dealer market for listed securities in the United States.

c.) The listing requirements for the NYSE are more stringent than those of NASDAQ.

d.) Any corporation desiring to be listed on the NYSE can do so for a fee.

e.) The NYSE is an OTC market functioning as both a primary and a secondary market.