Which of the Following Statements Is CORRECT

question 34

Multiple Choice

Which of the following statements is CORRECT?

• A) One disadvantage of operating as a corporation rather than as a partnership is that corporate shareholders are exposed to more personal liability than are partners.
• B) Relative to sole proprietorships, corporations generally face fewer regulations, and they also find it easier to raise capital.
• C) There is no good reason to expect a firm's stockholders and bondholders to react differently to the types of assets in which it invests.
• D) Stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns.
• E) Bondholders should generally be happier than stockholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns.

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Definitions:

Constructionist Perspectives

A theoretical viewpoint that emphasizes the socially constructed nature of reality, suggesting that our understanding of the world is shaped through social interactions and cultural norms.

Constructionist

Pertaining to theories that social phenomena and categories are socially constructed through language, communication, and negotiation.

Deviance

Behaviors, actions, or conditions that violate social norms or values, ranging from minor breaches to major violations, often subject to social judgment.

Low-Consensus Deviance

This refers to actions or behaviors that some people or groups in society may consider deviant, but there is significant disagreement or lack of consensus about whether these actions are truly deviant.