Which of the following statements is CORRECT?

i.Corporations generally face fewer regulations than proprietorships.

ii.Corporate shareholders are exposed to unlimited liability.

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

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

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

vi.A share of common stock is not a derivative, but an option to buy the stock is a derivative because the value of the option is derived from the value of the stock.

vii.Capital market instruments include both long-term debt and common stocks.

i, iv, v, vii

iii, vi, vii

iii, iv, v, vii

ii, iii, vi

i, iii, vii