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:

Counter Trader

Counter Trader is not a real key term. NO.

Stakeholder Supervisor

A supervisor or manager who has a vested interest in the success and outcomes of a project or organization, as their performance impacts various stakeholders.

Movie Theater

A venue equipped with a large screen and seating where audiences watch films.

Retail Salesperson

A professional who sells goods or services directly to consumers in a retail setting, offering product advice and customer service.