Which of the following statements is CORRECT? a. One of the advantages of the corporate form of organization is that it avoids double taxation. b. It is easier to transfer one's ownership interest in a partnership than in a corporation c. One of the disadvantages of a sole is that the proprietor is exposed to unlimited liability d. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., "one person, one vote. e. Corporations of all types are subject to the corporate income tax. Which of the following actions would be likely to reduce conflicts of interest between stockholders and managers? a. Congress passes a law that severely restricts hostile takeovers. b. Managerial compensation is changed so that managers receive larger cash salaries but fewer long-term options to buy shares of stock c. The company changes the way executive stock options are handled, with all now being vested after only 2 years rather than having 20% of the options awarded he vested every 2 years over a 10 year period d. The company's outside auditing firm is offered a consulting contract with the company. e. The board of directors becomes more vigilant in its oversight of the company's management. Which of the following statements is CORRECT? a. The optimal dividend is the one that satisfies the because they supply the majority of the firm's capital. b. The use of debt financing affect the probability of , but it has no effect on the firm's earnings or stock price. c. The of projected earnings and cash flows to stockholders depends to some