What Did a Study of 173 Firms Over a 25-Year

question 10

Multiple Choice

What did a study of 173 firms over a 25-year period reveal about CEOs of successful corporations?

• A) They tended to have less loyalty than former CEOs, switching companies as a faster pace.
• B) They tended to have the same functional specialization as the former CEO.
• C) They tended to be more aggressive in their risk-taking than former CEOs.
• D) They tended to rely more on skills developed through group decision-making.
• E) They tended to make decisions with no input from others.

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Definitions:

Ability-to-Pay Principle

A taxation principle that suggests taxes should be levied according to an individual's or entity's ability to pay, implying those with higher income should pay more taxes.

Taxes

Mandatory fiscal contributions or other forms of levies required from taxpayers by governmental bodies to support government expenditures and diverse public costs.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, placing a higher relative burden on lower-income earners.

Excise Tax

A tax levied on the manufacture, sale, or consumption of certain products or activities, often specific to certain goods like tobacco, alcohol, and fuel.