1. which of the following are the three advantages of a corporation?

a. unlimited liability, can borrow your money easily, double taxation

b. limited liability, can borrow money easily, agency conflicts

c. unlimited liability, can borrow money easily, double taxation

d. limited liability, agency conflicts, double taxation

e. limited liability, can borrow money easily, easy transfer of ownership

2. which of the following actions by a financial manager is most likely to create an agency problem

a. a manager using too little debt within the firm's capital structure because of the additional risk associated with it

b. a manager expensing a lavish dinner on the company expense report

c. a manager turning down a value contributing project because of its debts

d. refusing to lower selling prices if doing so will reduce the net profits

e. refusing to borrow money when doing so will create losses for the firm