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1. Which of the following are disadvantages of corporations? Check all that apply.
A. Corporations continue to exist even when the original owner of the business is no longer a member of the corporation.
B. Corporations do not protect business owners from liability should someone sue the company.
C. Corporations can be complicated and expensive to set up.
D. Corporations require that company owners pay two sets of taxes: one for themselves as individuals and one for the corporation.
2. Management at Work
Your best friend, Elsu, designs and makes furniture. Now he wants to start his own business. You know that Elsu likes to control his own work and that he doesn’t have a lot of time or money for complicated start-up procedures or ongoing record-keeping. What kind of legal structure would you recommend?
A. A sole proprietorship
B. A partnership
C. A corporation
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