Olivia, who has been sewing since a young age, decided that she would like to open a business called Gowns and Smiles, to make and sell prom and other formal dresses. While starting up, she would like to be the only owner of the business. Further, she does not want to go through a rigorous formation process, pay any fees or worry about making annual business lings for Gowns and Smiles. Which of the following would be a drawback to choosing to open Gowns and Smiles as a sole proprietorship? l. Olivia would be personally liable for any tort actions against Gowns and Smiles. ll. Olivia would be personally liable for any contract actions against Gowns and Smiles. lll. Gowns and Smiles, as an entity, would have to pay income tax on any profits that were made. IV. Olivia would have to form a board of directors to manage Gowns and Smiles