Which of the Following Statements Is CORRECT

question 14

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 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:

Worldview

A comprehensive perspective through which a person or group understands and interprets the world and their place in it, encompassing beliefs, values, and attitudes.

Interests

Preferences, desires, or areas of focus that individuals or groups prioritize or find important.

Organizational Control

The process through which a company controls and directs its resources to achieve its goals, involving procedures, standards, and policies for regulating performance.

Employee Autonomy

The degree to which employees have the freedom and independence to plan and execute their work tasks.