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:

Verbal Harassment

The use of words to belittle or demean another person, often creating an offensive or hostile environment.

Epithets

Descriptive phrases or adjectives expressing a quality characteristic of the person or thing mentioned.

Derogatory Comments

Negative remarks or statements that belittle, insult, or demean someone or something.

Determination of Rights

The process or act of deciding or establishing what rights individuals or groups are entitled to.