*Please answer questions 1, question 2 and question 4 fully*

*Please answer questions 1, questions 2 and questions 3 fully*

Transcribed image text: 1. Why would entreneneurs open themselves up to personal financial losses by choosing a proprietorship rather than a company form of organization? 2. Why do suppliers sometimes ask entrepreneurs of small companies to provide personal guarantees for a line of business credit? If an entrepreneur is asked (forced) to provide personal guarantees, then what personal protection does a company as a legal form really provide? 3. How would you expect a board of advisors to generally interact with a board of directors? What if the company was experiencing sudden losses in sales revenue? What difference would this make in how the two boards would interact? 4. Identify three corporations that are different in their legal form of organization (e.g, an S corporation, an LL.C, and a C corporation). How are these companies different? How are they similar? What advantages and disadvantages does each company achieve by maintaining their legal form or organization? 1. Is it more important for an entrepreneur to track cash or profits? Does it depend on the type of Dusiness and/or industry? What troubles will an entrepreneur face if she or he tracks only profits and ignores cash? What troubics wit ait entricprentur face if she or he tracks only cash and ignores profits? 2. What volume of sales is required to reach breakeven for the following business: The variable cost of producing one unit of the product is $5, the fixed costs of plant and labor are $500,000, and the selling price of a single product is $50 it is not alwoys easy to classify a cost as fixed or variable. What happena to the breakeven calculated above if some of the fixed costs are reclassified as variable costs? What happens if the reveise is the case 0.e, some of the variable costs are reclassitied as fixed costs)? 3. How usefut is a financiat plan when it is based on assumptions of the future and we are confldent that these assumptions are not going to be 100 percent correct? Does it make more iense for the entrepreneur to evaluate and modify financial plans monthly or wait for resuits from quarterly reports? Why or why not