Business finance help?
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which of the following statements is most correct? a. unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization. b. in part due to limited liability and ease of ownership transfer, corporations have more trouble raising money in financial markets than other organizational forms. c. one of the advantage of the corporate form of organization is that it avoids double taxation. d. it is easier to transfer ones ownership interest in a partnership than in a corporation. e. sole proprietorships are subject to less regulation than corporations. 2. which of the following statements is most correct? a the conflicts between bondholders and stockholders can be reduced with the use of restrictive bond covenants. b. the treat of takeovers reduces conflict of interest problems, but only between bondholders and stockholders. c. agency conflicts between stockholders and managers are not really a problem when non-managers own shares in a firm. d. managers may not operate in stockholders' best interest. as long as managers stay within the law, there is no effective controls that stockholders can implement to control managerial decision making. e. compensation managers with stock options can do nothing to help eliminate potential conflicts between stockholders and managers.
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Answer:
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