1. Explain how you understand the advantages and
disadvantages of the alternative legal forms for organizing a new venture to
be.

2. Explain and compare the S corporation and limited
liability company as alternative forms of incorporation.

3. Explain how you understand what difficulties may arise
when owners are reluctant to delegate or give up responsibility.

4. Describe how you understand the role of budgets in
preparing pro forma statements.

5. Describe the application and calculation of the
break-even point for the new venture.

6. Describe why positive profits can still result in a
negative cash flow.