Which of the following statements is correct? corporations and partnerships have an advantage over proprietorships because a proprietor is exposed to unlimited liability, but the liability of all investors in the other types of businesses is more limited. for a stock to be in equilibrium, its intrinsic value must be greater than the actual market price. most business in the u. s. is conducted by corporations, and corporations' popularity results primarily from their favorable tax treatment. conflicts can exist between stockholders and managers, but potential conflicts are reduced by the possibility of hostile takeovers. a good goal for a firm's management is the maximization of expected eps.

Reynolds corp. factors $400,000 of accounts receivable with mateer finance corporation on a without recourse basis on july 1, 2015. the receivables records are transferred to mateer finance, which will receive the collections. mateer finance assesses a finance charge of 1 ½ percent of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. the transaction is to be recorded as a sale. required: a. prepare the journal entry on july 1, 2015, for reynolds corp. to record the sale of receivables without recourse. b. prepare the journal entry on july 1, 2015, for mateer finance corporation to record the purchase of receivables without recourse— think through this. c. explain the difference between sale of receivables with recourse as oppose to without recourse.