How do property rights influence the exchange of goods and services in the market? a. Property rights prevent market failures from arising in an economy.
b. Property rights prevent producers from exhibiting profit-seeking behavior.
c. Property rights allow consumers' wants and needs to control the output of producers.
d. Property rights determine ownership of resources among businesses, individuals, and governments.

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.