What is the most important difference between a corporation and all other organizational forms?

$($Select all the choices that apply.$)$

A$.$ A corporation is a legal entity separate from its owners. This means ownership shares in the corporation can be freely traded.

B$.$ A corporation is a legal entity separate from its owners. This means ownership shares in the corporation can be traded upon permission from the board of directors. $q,$

C$.$ None of the other organizational forms share this characteristic.

D$.$ Most organizational forms share this characteristic.

Recall the last time you ate at an expensive restaurant where you paid the bill. Now think about the last time you ate at a similar restaurant, but your parents paid the bill. Did you order more food $($or more expensive food$)$ when your parents paid? Explain how this relates to the agency problem in corporations.

$($Select all the choices that apply.$)$

A$.$ In both situations there may be a lack of interest in controlling costs if those costs are not borne directly by the person making the decision.

B$.$ While you may be faced with an agency problem $($spending more when your parents are buying than you would if you were paying$),$ corporate managers are seldom faced with such decisions.

C$.$ The agency problem leads an individual $($in your case$)$ and corporate managers $($in the corporate setting$)$ to put their own self$-$interest ahead of the interests of the shareholders $($your parents in your case$).$

D$.$ Your situation could never lead to an agency problem since your parents would only want the best for you.