Indicate whether each of the following actions is related to (a) managing under the corporate form of business, (b) using equity financing,
(c) determining dividend policies, (d) evaluating performance using return on equity, or (e) issuing stock options:
1. Considering whether to make a distribution to stockholders.
2. Controlling day-to-day operations.
3. Determining whether to issue preferred or common stock.
4. Compensating management based on the company's meeting or exceeding the tar- geted return on equity.
5. Compensating employees by giving them the right to purchase shares at a given price.
6. Transferring shares without the approval of other owners.