Which of These Is a Reason Why Companies Are More

question 24

Multiple Choice

Which of these is a reason why companies are more heavily regulated than sole traders or partnerships?

• A) The owners (shareholders) are often removed from the day-to-day running of the business.
• B) As companies have limited liability, there is a greater need to protect creditors from financial loss.
• C) The members of a company operate under the mutual agency principle.
• D) A and B

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Definitions:

Compulsions

Actions or thoughts that a person compulsively repeats due to obsessions or strict guidelines.

Obsessions

Recurrent and persistent thoughts, impulses, or images that are intrusive and cause significant anxiety or distress.

Neutralizing

Attempting to eliminate thoughts that one finds unacceptable by thinking or behaving in ways that make up for those thoughts and so put matters right internally.

Cognitive-Behavioral Perspective

A psychological approach that emphasizes the role of thought processes and behaviors in understanding and treating mental disorders.