1. Which of the following would typically take place in an appellate court?
A. Direct examination of witnesses by attorneys.
B. Choosing a jury.
C. Testimony of witnesses.
D. None of the above.
2. Zoe operates Wood Rail Center Sports, an athletic equipment shop, as a sole proprietorship. She is concerned about her tax liability, and wondering whether to continue as a sole proprietorship or to reorganize under another business structure. Which of the following would be the best advice for Zoe?
A. Zoe should remain a sole proprietorship; she would have the same tax liability if she reorganizes as a LLC.
B. Zoe should remain a sole proprietorship; there are no business taxes on sole proprietorships.
C. Zoe should consider reorganizing as a LLC to reduce her tax liability.
D. Zoe should consider reorganizing as a corporation to avoid personal tax liability on business income.