One of the ways to mitigate agency conflict includes Monitoring by the top management Monitoring by the relatives of the top management Threat of take-over and management gets replaced Compensation plans that reward managers regardless of their performance One of the disadvantages of the partnership is Relatively easy to start Taxed at the personal tax rate Access to funds from multiple partners Difficult to handover ownership The advantages of corporation include Greater regulation Double taxation of dividends Agency Conflict Not difficult to raise capital