Which of the Following Statements Is True

question 10

Multiple Choice

Which of the following statements is true?

• A)In a well-run, publicly-held company, management relies on the shareholder input to decide what policies will, in fact, maximize the value of their firm.
• B)Because it is difficult for management to determine what will maximize firm value in the imperfect world of reality, it is critical for the government to pass laws that will result in
• Value-maximizing decisions in all firms.
• C)Although it should be clear to corporate managers what steps are necessary to maximize firm value, managers choose to look out for their own best interests instead.
• D)None of the above is a true statement.

---

Definitions:

Olfactory Bulbs

Structures located in the forebrain involved in the sense of smell, processing odors detected by nasal receptors.

Limbic System

In humans, functional association of various brain centers, including the amygdala and hippocampus; governs learning and memory and various emotions such as pleasure, fear, and happiness.

Pons

Portion of the brain stem above the medulla oblongata and below the midbrain; assists the medulla oblongata in regulating the breathing rate.

Medulla

An inner region or core in various structures, often used to refer to the medulla oblongata, a part of the brainstem that controls vital functions.