Which of the Following Statements Is CORRECT

question 39

Multiple Choice

Which of the following statements is CORRECT?

• A) One disadvantage of organizing a business as a corporation rather than a partnership is that the equity investors in a corporation are exposed to unlimited liability.
• B) Using restrictive covenants in debt agreements is an effective way to reduce conflicts between stockholders and managers.
• C) Managers generally welcome hostile takeovers since the "raider" generally offers a price for the stock that is higher than the price before the takeover action started.
• D) The managers of established, stable companies sometimes attempt to get their state legislatures to impose rules that make it more difficult for raiders to succeed with hostile takeovers.
• E) The managers of established, stable companies sometimes attempt to get their state legislatures to remove rules that make it more difficult for raiders to succeed with hostile takeovers.

---

Definitions:

Subsidence

The gradual sinking or settling of an area of land, which can be caused by natural processes or human activities.

Continental Platform

A broad region that surrounds the continental shield and typically exposes horizontal to gently dipping sedimentary rocks.

Crystalline Basement

The crystalline (metamorphic and igneous) rocks that underlie sedimentary and volcanic rocks in an area; widely exposed in the continental shield.

Broad Domes

Broad domes refer to large, rounded structures on the Earth's surface, often created by the slow uplift of the underlying strata.