Which of the Following Statements Is CORRECT

question 28

Multiple Choice

Which of the following statements is CORRECT?

• A) Corporations are taxed more favorably than proprietorships.
• B) Corporations have unlimited liability.
• C) Because of their size,large corporations face fewer regulations than smaller corporations and proprietorships.
• D) Reducing the threat of corporate takeover increases the likelihood that managers will act in shareholders' interests.
• E) Bond covenants are designed to protect bondholders and to reduce potential conflicts between stockholders and bondholders.

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Definitions:

Response Rate

The proportion of people who respond to a specific call-to-action, questionnaire, or experiment out of the total number solicited.

Punishment

A process through which the likelihood of a behavior's occurrence is decreased by presenting an adverse stimulus or removing a desirable stimulus following the behavior.

Extinguish

In psychology, to diminish the occurrence of a conditioned response by repeatedly presenting the conditioned stimulus without the unconditioned stimulus.

Learned Helplessness

A psychological condition in which individuals believe they lack control over events and therefore do not try to change their situation despite having the ability to do so.