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1-10 Which legal form of business organization is most common? Which form do the largest businesses typically take and why? 1-11 Describe the roles of, and the relationships among, the major parties in a corporation: stockholders, board of directors, and managers. How are corporate owners rewarded for the risks they take? 1-12 Explain why corporations face a double taxation problem? For corporations, how are the marginal and average tax rates related? 1-13 Define agency problems, and describe how they give rise to agency costs. Explain how a firm's corporate governance structure can help avoid agency problems. 1-14 How can the firm structure management compensation to minimize agency problems? 1-15 How do market forces-both shareholder activism and the threat of takeover-prevent or minimize the agency problem? What role do institutional investors play in shareholder activism