Question 5 Which of the following statements is not correct? I tr tes he Stockholders are generally more willing than bondholders to have managers invest in risky projects with high potential returns as opposed to safer projects with lower expected returns. In any type of partnership, every partner has the same rights, privileges, and liability exposure as every other partner. When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public," and the market for such stock is called the new issue market. r . Potential agency problems can arise between stockholders and managers. because managers hired as agents to act on behalf of the owners may instead make decisions favorable to themselves rather than the stockholders a One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partner