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b. It is generally easier to transfer one’s ownership interest in a
partnership than in a corporation.
c. One of the advantages of the corporate form of organization is that it
avoids double taxation.
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.
2. Which of the following would be most likely to lead to higher interest
rates on all debt securities in the economy?
a. Households start saving a larger percentage of their income.
b. The economy moves from a boom to a recession.
c. The level of inflation begins to decline.
d. Corporations step up their expansion plans and thus increase their
demand for capital.
e. The Federal Reserve uses monetary policy in an attempt to stimulate
the economy.
3. Which of the following statements is CORRECT?