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Question 4 (20 points) Which of the following statement is INCORRECT? In order to maximize its shareholders' value, a firm's management must attempt to maximize
Question 4 (20 points) Which of the following statement is INCORRECT? In order to maximize its shareholders' value, a firm's management must attempt to maximize the stock price on a specific target date. Partnerships and proprietorships generally have a tax advantage over corporations. One danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt. This problem would be avoided if you formed a corporation to operate the business. Question 5 (20 points) Which of the following statements is INCORRECT? Corporations generally find it easier to raise large amounts of capital than a sole proprietorship or a partnership. Corporations generally face fewer regulations than sole proprietorships. It is usually easier to transfer ownership in a corporation than in a partnership. Corporate shareholders are exposed to limited liability
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