Which of the following statements is correct?

a. as a public transfer payment, social security benefit is available only to the poor.
b. social security benefits are received by people who had contributed to the fund during their active work years.
c. the social security program funnels transfers from retired individuals to the youngest children of low-income families.
d. social security is an entitlement which is available to everyone, including those who have not contributed to the fund during their active work years.

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.