Exercises provide you with an additional opportunity to reinforce basic chapter concepts.

Exercise $1-1$ Distinguishing business organizations LO$2$

Presented below are descriptions of several different business organizations. Determine whether the situa.

tion described refers to a sole proprietorship, partnership, or corporation.

a$.$ Ownership of Cola Corp. is divided into $1,000$ shares.

b$.$ Text Tech is owned by Kimberly Fisher, who is personally liable for the debts of the business.

c$.$ Jerry Forrentes and Susan Montgomery own Financial Services, a financial and personal services provider.

Neither Forrentes nor Montgomery has personal responsibility for the debts of Financial Services.

d$.$ Nancy Kerr and Frank Levens own Runners, a courier service. Both Kerr and Levens are personally liable for

the debts of the business.

e$.$ MRS Consulting Services does not have a separate legal existence apart from the one person who owns it$.,$

f$.$ Biotech Company has one owner and does not pay income taxes.

g$.$ Torby Technologies has two owners and pays its own income taxes.