Which of the following is not true?

Partnerships are not subject to double taxation, meaning that owners of a partnership will pay taxes only for personal income tax.

After lending money to the firm, the debtholders immediately obtain ownership interests in the firm in exchange of the money they lent.

Generally, debtholders have a higher 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.

Which of the following is a question answered using finance?

How much money the firm will borrow and how much equity will the firm issue to pay for its operations.

How the firm will better manage its human resources.

How the organization will develop a better working culture.

How the firm will choose its key demographic to which it will promote its new product.