Svelter corporation does not face the problem of double taxation as the internal revenue service (irs) does not tax the earnings of the company separately. instead, taxes are only levied on the personal income of the stockholders. a limitation, however, is that the company is only allowed to have a maximum number of 100 stockholders at a time. given this information, svelter corporation is a(n)

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.