Which of the Following Statements Is CORRECT

question 17

Multiple Choice

Which of the following statements is CORRECT?

• A) A good goal for a firm's management is 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) Because most stock ownership is concentrated in the hands of a relatively small segment of society, firms' actions to maximize their stock prices have little benefit to society.
• 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) The potential exists for agency conflicts between stockholders and managers.

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Definitions:

Integration

The process of combining parts into a whole, especially the incorporation of minority groups into mainstream society.

Psychological Processes

Internal mechanisms and operations that underpin the human mind's functioning, including perception, memory, and emotion.

Culture

The shared values, norms, behaviors, and artifacts of a group of people that are passed down from generation to generation.

Attributes

Characteristics, qualities, or properties that describe or identify something.