Question 1 (10 points) Which one of the following statements is correct? A. Both partnerships and corporations incur double taxation.- B. Sole proprietorships and partnerships are taxed in a similar fashion.- C. Partnerships are the most complicated type of business to form.- D. Both partnerships and corporations have limited liability for general partners and shareholders. E. All types of business formations have limited lives.- t Question 2 (10 points) Which one of the following actions by a financial manager creates an agency problem? + A. refusing to borrow money when doing so will create losses for the firm- B. refusing to lower selling prices if doing so will reduce the net profits C. agreeing to expand the company at the expense of stockholders' value- D. agreeing to pay bonuses based on the market value of the company's stock E. increasing current costs in order to increase the market value of the stockholders' equity