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.