Which of the following statements is CORRECT?

a$.$ Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value than are managers who do not face the threat of hostile takeovers.

b$.$ Bond covenants are an effective way to resolve conflicts between shareholders and managers.

c$.$ Corporations generally are subject to more favorable tax treatment and fewer regulations than partnerships and sole proprietorships, which is why corporations do most of the business in the United States.

d$.$ One advantage of the corporate form of organization is that liability of the owners of the firm is limited to their investment in the firm.

e$.$ Because of their simplified organization, it is easier for sole proprietorships and partnerships to raise large amounts of outside capital than it is for corporations.