Which of the following statements is true of insider trading? a. Insider trading holds back information from financial markets that moves stock prices closer to the point that reflects their true value.
b. Allowing insider trading deters the employees of a firm from working for the benefit the firm.
c. When an insider-trading stock transaction leads to one person's gain and another's loss, it amounts to fraud.
d. Insiders as well as outsiders can lay legitimate claims on gains from stock sales that take advantage of others.

Which of the following statements is correct? a major disadvantage of a partnership relative to a corporation is the fact that federal income taxes must be paid by the partners rather than by the firm itself. in a typical partnership, liability for other partners’ misdeeds is limited to the amount of a particular partner’s investment in the business. true in a limited partnership, the limited partners have voting control, while the general partner has operating control over the business, and the limited partners are individually responsible, on a pro rata basis, for the firm’s debts in the event of bankruptcy. partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity of partnership interests.