Exercise 6. Mark the sentences that are true.

1. Business firms market their products, engage in advertising, and manage a sales force.

2. There are three basic kinds of business firms: proprietorships, partnerships, corporations.

3. The proprietorship has several advantages such as variety of skills, abilities, ease of expansion.

4. Corporations are firms owned jointly by two ore more persons who are co-owners of business for profit.

5. Partnership is an entity formed and owned by a group of people called stockholders and given certain rights, privileges and liabilities by law.

6. Disadvantages of corporation are profit, lack of freedom of action, taxes.