Which of the Following Statements Is CORRECT

question 28

Multiple Choice

Which of the following statements is CORRECT?

• A) Corporations are taxed more favorably than proprietorships.
• B) Corporations have unlimited liability.
• C) Because of their size,large corporations face fewer regulations than smaller corporations and proprietorships.
• D) Reducing the threat of corporate takeover increases the likelihood that managers will act in shareholders' interests.
• E) Bond covenants are designed to protect bondholders and to reduce potential conflicts between stockholders and bondholders.

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Definitions:

Third-Party Candidate

A political candidate representing a party other than the two dominant ones in a bipartisan system, often with lesser chances of winning.

1912

A year in the early 20th century notable for several significant historical events, including the sinking of the Titanic.

Sixteenth Amendment

An amendment to the U.S. Constitution, ratified in 1913, granting Congress the power to levy an income tax.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, which can vary based on income level, type of goods, or activities.