Which of the Following Statements Is CORRECT

question 39

Multiple Choice

Which of the following statements is CORRECT?

• A) A good goal for a firm's management is 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) Because most stock ownership is concentrated in the hands of a relatively small segment of society, firms' actions to maximize
• Their stock prices have little benefit to society.
• D) Corporations and partnerships have an advantage over proprietorships because a sole proprietor is exposed to unlimited liability, but the liability of all investors in the other types of
• Businesses is more limited.
• E) The potential exists for agency conflicts between stockholders and
• Managers.