Tony and Ammando currently operate a partnership, but they are thinking about incorporating their business. Tony is unsure about some of the differences between corporations and partinerships. Which of the following statements are FALSE? 1. If Armando dies, the carporation would cease to exist. 2. The corporation must carry on business activities. 3. Once the corporation is established, Tony would be free to set up a competing business as a sole proprietor. 4. Both Tony and Armando would have limited liability for the debts and obligations of the corporation. a) 1 and 2 b) 2 only c) 1 and 3 d) 2 and 4 .

1. Tony and Ammando currently operate a partnership, but they are thinking about incorporating
their business. Tony is unsure about some of the differences between corporations and
partinerships. Which of the following statements are FALSE? 1. If Armando dies, the
carporation would cease to exist. 2. The corporation must carry on business activities. 3. Once
the corporation is established, Tony would be free to set up a competing business as a sole
proprietor. 4. Both Tony and Armando would have limited liability for the debts and obligations
of the corporation. a) 1 and 2 b) 2 only c) 1 and 3 d) 2 and 4