1. State and explain the specific difference between the following pairs of forms of business
organizations by discussing one advantage and one drawback.
a. Corporation vs. partnership
b. Corporation vs. sole proprietorship
c. Corporation vs. S-corporation
2. Agency Conflict
a. Define agency conflict.
b. State and explain one way agency conflict may be reduced by outside forces (External to
the firm).
c. State and explain one way in which agency conflict may be reduced internally.
d. State & explain two reasons for the failure of stock options to reduce agency conflict.