Hart nance and jason symington operate gift boutiques in shopping malls. the partners split profits and losses equally, and each takes an annual drawing of $80,000. to even out the workload, nance travels around the country inspecting their properties. symington manages the business and serves as the accountant. from time to time, they use small amounts of store merchandise for personal use. in preparing for his daughter's wedding, symington took inventory that cost $10,000.

how do you feel symington should have recorded these transactions? why? what are the ethical implications of symington's actions?

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.