Legal strategy

Choose all that are appropriate regarding sole proprietorships and corporations.

1. If there is no public regulation governing an economic activity, one may immediately start a business without completing any formalities as a sole proprietorship.
2. Given that lenders to a stock company can only lay claim to the assets owned by the company, laws prescribe the minimum amount of assets that must be held by stock companies
3. The owner of a sole proprietorship faces unlimited liability.
4. In startups, sole proprietorships have more credibility than corporations.
5. As businesses grow larger, it would be possible to streamline legal relations through incorporation.