Which of the following statements is CORRECT

a. Corporations generally face fewer regulations than proprietorships.

b. Corporate shareholders are exposed to unlimited liability.

c. Corporate shareholders are exposed to unlimited liability, but this factor is offset by the tax advantages of incorporation.

d. There is a tax disadvantage to incorporation, and there is no way any corporation can escape this disadvantage, even if it is very small.

e. It is usually easier to transfer ownership in a corporation than in a partnership.

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers?

a. Beef up the restrictive covenants in the firm's debt agreements.

b. Eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock.

c. Change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover.

d. Pay managers large cash salaries and give them no stock options.

e. For a firm that compensates managers with stock options, reduce the time before options are vested, i.e., the time before options can be exercised and the shares that are received can be sold.

Money markets are markets for

a. Short-term debt securities such as Treasury bills and commercial paper.

b. Common stocks.

c. Foreign currencies.

d. Long-term bonds.

e. Consumer automobile loans.