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The partners of the ABC partnership have recently decided to convert the business into a corporation. The partners believe that this change with this change

  1. The partners of the ABC partnership have recently decided to convert the business into a corporation. The partners believe that this change with this change the corporation will be exposed to less liability but at the same time they will find it more difficult to transfer their ownership. Are the partners correct or not? Explain why
  2. Define and explain the meaning behind the term Agency Relationship, and how Agency Problems could arise? Provide one example depicting the issue of agency problem.

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