Which of the Following Statements Is CORRECT

question 17

Multiple Choice

Which of the following statements is CORRECT?

• A) A good goal for a firm's management is maximization of expected EPS.
• B) Most business in the U.S.is conducted by corporations, and corporations' popularity results primarily from their favorable tax treatment.
• C) Because most stock ownership is concentrated in the hands of a relatively small segment of society, firms' actions to maximize their stock prices have little benefit to society.
• D) Corporations and partnerships have an advantage over proprietorships because a sole proprietor is exposed to unlimited liability, but the liability of all investors in the other types of businesses is more limited.
• E) The potential exists for agency conflicts between stockholders and managers.

---

Definitions:

Terrestrial

Terrestrial refers to organisms or environments that are land-based, as opposed to aquatic or marine.

Oceans

Large bodies of saltwater that cover approximately 71% of the Earth's surface and serve as a critical part of the planet's climate system and habitat for marine life.

Biological Magnification

The process by which the concentration of toxic substances increases in each successive link in the food chain.

Bioaccumulation

The buildup of a persistent toxic substance, such as certain pesticides, in an organism’s body.