Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) Other things held constant,it generally is safer to invest money in a proprietorship than in a partnership or a corporation.
B) According to the text,law firms and accounting firms must be organized as proprietorships or partnerships;these businesses do not have the option of incorporating.
C) If you are planning to start a business,which you will run as the sole employee,and if you expect the business to earn $1,000,000 per year before taxes,you can minimize federal income taxes by setting up the business as a corporation.
D) According to the text,"agency problems" tend to increase as the percentage of a corporation's stock owned by its managers increases.
E) Maximizing the income statement item "net income" is not the best goal for a corporation whose managers are interested in maximizing the economic welfare of the firm's stockholders.