All of the following are advantages a corporation may have over a partnership or a proprietorship, except which one?

		Ease of transfer of ownership interest.
		Limited liability.
		Ability to raise capital.
		Elimination of double taxation.
		Unlimited life.

Shareholders can attempt to overcome managerial agency problems by:

		all of the other options can be used to reduce (overcome) agency problems
		using specialized compensation contracts
		incurring bonding costs to reduce agency problems
		relying on market discipline such as hostile takeovers
		incurring monitoring expenditures

Which of the following 2 basic financial principles together contributes the most toward making markets efficient? Note that each answer has 2 basic financial principles listed together.

		all of the other responses are equally correct
		agency problem principle and options principle
		options principle and cash is king principle
		incremental benefits principle and time value of money principle
		self-interest behavior principle and two-sided transactions principle