1. True or False: Unlimited liability is a major disadvantage of a sole proprietorship.

2. True or False: The amount of Net Income is the end result of a balance sheet.

3. Multiple Choice: The _____________ indicates what the firm owns and how these assets are financed in the form of liabilities and ownership interest (Snapshot).

1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
4. None of the above

4. Which of the following forms of business offers limited liability
5. 1. Sole Proprietorship
   2. Partnership
   3. Corporation
   4. None of the above

5. Multiple Choice: Fixed assets are usually financed with _____________ funds.
   1. Short-Term
   2. Long-Term
   3. Permanent
   4. None of the above