QUESTION 1 If a firm's board of directors wants to maximize value for its stockholders in general (as opposed to some specific stockholders), it should design an executive compensation system whose focus is on the firm's long-term value. True False QUESTION 2 One disadvantage of forming a corporation rather than a partnership is that this makes it more difficult for the firm's investors to transfer their ownership interests. True False QUESTION 3 b. Which of the following statements is CORRECT? a. Corporate shareholders are exposed to unlimited liability, There is a tax disadvantage to incorporation, and there is no way any corporation can escape this disadvantage, even if it is very small c. Corporations generally face fewer regulations than proprietorships. d. It is usually easier to transfer ownership in a corporation than in a partnership e. Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation