Pages' Number : Form: Question 1: Read the followings and choose the correct answer (1.5 points) 1. Which of the following investments has the highest effective annual return (EAR)? (Assume that all CDs are of equal risk). a. a bank CD that pays 8 percent interest compounded quarterly b. a bank CD that pays 8 percent compounded monthly a bank CD that pays 8 percent annually d. a bank CD that pays 8 percent compounded semiannually C. 2.All of the following business organizations provide limited liability to their owners except: a. general partnership b. S-type corporation c. corporation d. limited liability company 3.Bill, a local inventor, developed a diet pill that he believes will solve the obesity problem in the United States. Bill wants to create a new company, 50% owned by Bill and 50% owned by a major drug company. Although he believes the pills are safe, Bill is concerned about liability if someone becomes sick or dies. The best form of business organization for the new company is e. sole proprietorship with Bill as owner and the drug company as creditor f. general partnership with Bill and the drug company as equal partners g. S-type corporation with Bill and the drug company owning equal shares h. limited liability company with Bill and the drug company owning equal shares 1 2 3 1