32) As the CEO of Blue Corp., Terrell makes it a point to meet new hires at all levels of his organization. He explains the goals of the company and emphasizes the importance of an individual employee's role in the larger picture. This initiative of Terrell focuses on the of performance management.

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.