All Else Equal, in Which of the Following Forms of Business

question 34

Multiple Choice

All else equal, in which of the following forms of business would the possibility of an agency problem be the greatest?

• A)An U.S.corporation that is publicly traded.
• B)A proprietorship.
• C)A partnership in which all the partners share management and decision-making responsibilities equally.
• D)A foreign corporation with concentrated ownership that is, relatively few owners.

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Definitions:

Adults

Individuals who are considered to be fully grown or developed, typically over the age of maturity which varies among different cultures and legal systems.

Limits

Boundaries or constraints established to define acceptable behavior or actions within a specific context.

Empower

To give power or authority to; enabling individuals or groups to take control of their circumstances and achieve their own goals independently.

Children

Individuals in the early stages of life, typically from birth to puberty, who are developing physically, mentally, and socially.