CHAPTER 1INTRODUCTION TO CORPORATE FINANCEAnswers to Concept Questions1.The three basic forms are sole proprietorships, partnerships, and corporations. The advantages and disadvantages of sole proprietorships and partnerships are: Disadvantages: unlimited liability, limited life, difficulty in transferring ownership, hard to raise capital funds. Some advantages: simpler, less regulation, the owners are also the managers, sometimes personal tax rates are better than corporate tax rates
