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:

Hominoids

A primate group that includes all apes and humans, characterized by higher intelligence and more complex social structures compared to other primates.

Hominids

A family of primates that includes humans and their fossil ancestors, characterized by bipedalism and large brains.

Comparative Differences

The identification and analysis of differences and similarities between two or more entities or variables, often used to understand their nature or to make decisions based on their characteristics.

New World Monkeys

Primates that are native to Central and South America, characterized by their flat noses and often prehensile tails.