Which of the following statements is CORRECT? A corporation is a legal entity that is generally created by a state; its life and existence is separate from the lives of its individual owners and managers. Although its stockholders are insulated by limited legal liability, the corporation's legal status does not protect the firm's managers in the same way,le. bondholders can sue its managers if the firm defaults on its debt, even if the default is the result of poor economic conditions. Two key advantages of the corporate form over other forms of business organization are unlimited liability and limited life. Umited liability of its stockholders is an advantage of the corporate form of organization, but corporations have more trouble raising money in financial markets because of the complexity of this form of organization The main method of transferring ownership Interest in a corporation is by means of a hostile takeover. U Question 32 2.5 pts Which of the following statements is CORRECT? Attracting large amounts of capitalis more difficult for partnerships than for corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests. A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company In a regular partnership, Hability for other partners' misdeeds is limited to the amount of a partner's investment in the business. A major disadvantage of all partnerships compared to all corporations is the fact that federal income taxes must be paid by the partners rather than by therm itself The limited partners in a limited partnership have voting control while the general partner has operating control over the business. Also, the lenited partners are individually responsible, on a pro rata basis for the firm's debts in the event of bankruptcy