Which of the following is not true? Corporations are subject to double taxation, meaning that owners of a corporation will pay taxes twice by paying the corporation income tax and individual income tax separately. After lending money to the firm, the debtholders do not get any ownership interests in the firm in exchange of the money they lent. Generally, debtholders have a lower priority over equity holders in liquidating the firm's assets (or going after the firm to recover its money) in case the firm goes bankrupt. The agency problem arises when the principal (i.e. the employer) hires someone to do certain job for him/her, and the employed person has an incentive to act in a manner that will hurt the principal's . (employer's) interests