Which of the Following Statements Is TRUE? the Scale of a Corporation

question 42

Multiple Choice

Which of the following statements is TRUE? The scale of a corporation makes a difference to how the rules of corporate law operate because

• A)large and small corporations are incorporated under different statutes.
• B)only large corporations can carry on business in more than one jurisdiction.
• C)small corporations are taxed at different rates than large corporations.
• D)large corporations are better able to bear the risk of unauthorized liabilities than small corporations.
• E)in large corporations, the separation between management and shareholders makes it more difficult for shareholders to exercise control over management and to align the interests of management with those of shareholders.

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Definitions:

Confederates

Individuals who are aware of the experiment's purpose and work with the researcher to simulate a social situation in order to manipulate the experimental setting, but are presented to participants as fellow participants.

Forced Compliance

is a psychological phenomenon where an individual is compelled to act in contradiction to their beliefs or attitudes, often leading to a change in those beliefs or attitudes due to cognitive dissonance.

Cognitive Dissonance

A psychological conflict resulting from incongruous beliefs and attitudes held simultaneously.

Central Route

A concept from the Elaboration Likelihood Model of persuasion, referring to the path of cognitive processing that involves detailed scrutiny of persuasive information.