Which of the following statements is CORRECT
1. Which of the following statements is CORRECT?
a. One of the advantages of the corporate form of organization is that it avoids double taxation.
b. It is easier to transfer one’s ownership interest in a partnership than in a corporation.
c. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.
d. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., “one person, one vote.”
e. Corporations of all types are subject to the corporate income tax.
2. Which of the following is NOT to address the agency conflict between shareholders and managers?
a. Maximize sales
b. Monitor managers’ activities
c. Give incentives based on performance
d. Offer stock shares or stock options
e. Hostile takeover threat
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