Which of the Following Statements Is CORRECT

question 19

Multiple Choice

Which of the following statements is CORRECT?

• A) One disadvantage of operating as a corporation rather than as a partnership is that corporate shareholders are exposed to more personal liability than partners.
• B) There is no good reason to expect a firm's bondholders and stockholders to react differently to the types of new asset investments a firm makes.
• C) Bondholders are generally more willing than stockholders to have managers invest in risky projects with high potential returns as opposed to safer projects with lower expected returns.
• D) Stockholders are generally more willing than bondholders to have managers invest in risky projects with high potential returns as opposed to safer projects with lower expected returns.
• E) Relative to sole proprietorships, corporations generally face fewer regulations, which makes raising capital easier for corporations.

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Definitions:

Stressors

External or internal stimuli that cause stress, which can lead to physical, mental, or emotional strain or tension.

Approach-Avoidance Conflict

A psychological conflict that occurs when a goal is both appealing and deterring at the same time.

Immune System

The system of the body that recognizes and destroys foreign agents (antigens) that invade the body.

Psychological States

Conditions of the mind associated with feelings, thoughts, and behavior at a particular time.