Question
Which of the following statements is incorrect? A) Due to the separation of ownership and management of a firm's capital, principal-agent conflicts are inherent in
Which of the following statements is incorrect?
A) Due to the separation of ownership and management of a firm's capital, principal-agent conflicts are inherent in the corporate form of business.
B) Environmental, social and governance risks have a direct effect on firm's value since they determine the longevity and sustainability of a firm's earnings.
C) Due to the owner's unlimited liability, a sole proprietorship may unnecessarily expose the owner's assets in a potential liability lawsuit.
D) While sole proprietorships can readily raise capital, owner expertise in business is essential for the longevity of the business.
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