45.Emile has very little money with which to start his business so he wants to keep the cost or forming hiscompany as low as possible. Which for of ownership would you recommend for Emile? a.sole proprietorshipb.partnershipc.C corporationd.S corporationANS:APTS:1DIF:Difficulty: EasyREF:p. 207OBJ:LO: 8-3NAT:BUSPROG: AnalyticKEY:Bloom’s: Application | Bloom’s: Comprehension 46.Frank would like to avoid personal financial loss if his business idea does not work. Which form of ownership would you suggest?

47.Ralph formed a corporation as a fund manager. He accepted money from his customers promising to invest it and build cash value for them. Instead he kept the money for himself to enjoy a lavish lifestyle. The court removed liability protection from his corporate entity because the incorporation had been used to perpetuate fraud. This is an example of: 48.Glenda, an employee of a corporation, caused a traffic accident while on company business. Who will pay for the damages? 49.The two dimensions of management control of a small corporation usually involves which individuals? a.Stockholders owning the majority of the voting common stockb.Corporate officers in conducting daily operationsc.Both stockholders and corporate officers d.Neither the stockholders or the corporate officersANS:CPTS:1DIF:Difficulty: ModerateREF:p. 208OBJ:LO: 8-3NAT:BUSPROG: Reflective ThinkingSTA:DISC: DynamicsKEY:Bloom’s: Knowledge 50.Jane and Randy have a partnership with their company of JR Enterprises. Which statements reflect how the partnership pays taxes?