Emily is an entrepreneur who enjoys the challenge of raising new capital, getting a new business up and running and then letting someone else take over. This allows her to reap the financial benefits before moving on to the next new venture. In most cases the businesses have been successful, but a couple have failed dramatically. Emily favours the corporate form of business and retains a controlling interest in each business. Which of the following statements are TRUE? 1.By structuring each new business as a separate corporation, Emily protects the successful businesses from the ones that are financial failures. 2.Emily can use the business losses that result from the unsuccessful businesses to offset the taxable profits that result from the successful businesses. 3.If Emily maintains an active role each business, she is in danger of losing her limited liability status. 4.If one of Emily's incorporated businesses is a direct mail advertising business, she can start a similar business as a sole proprietor 2 and 3 3 and 4 1 and 2 1 and 4