Which of the Following Statements Is CORRECT

question 45

Multiple Choice

Which of the following statements is CORRECT?

• A) A good goal for a firm's management is the 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) Conflicts can exist between stockholders and managers, but potential conflicts are reduced by the possibility of hostile takeovers.
• 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) For a stock to be in equilibrium, its intrinsic value must be greater than the actual market price.

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Definitions:

Homosexuality

A sexual orientation characterized by a romantic or sexual attraction to individuals of the same sex.

Psychopathology

The study of psychological disorders, including their symptoms, etiology (causes), and treatments.

American Psychological Association

A leading scientific and professional organization representing psychology in the United States, dedicated to advancing the creation, communication, and application of psychological knowledge to benefit society and improve people's lives.

Sexual Orientation

A person's emotional, romantic, or sexual attraction to individuals of a specific gender, which can include heterosexual, homosexual, bisexual, and other orientations.