Question: 1. What is the agency problem, and how might it impact the goal of maximization of shareholder wealth?
2. List the key advantages and disadvantages of a
(a) sole proprietorship,
(b) partnership, and
(c) corporation.
3. Show the differences between organizational forms using the following criteria:
(a) number of owners,
(b) liability for firm's debts,
(c) change in ownership dissolves the firm, and
(d) taxation.