Empirical Evidence Has Found That on Average Public Firms That

question 70

Multiple Choice

Empirical evidence has found that on average public firms that have been privatized by issuing public equity have

• A) improved profitability.
• B) higher debt levels.
• C) lower real sales.
• D) all of the above.

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Definitions:

Reasonable Care

A legal standard that requires individuals or entities to act with the caution and diligence that a prudent person would under similar circumstances.

Bailment

The transfer of possession of personal property from one person to another with the understanding that the property will be returned.

Mutuum

An ancient legal term referring to a loan agreement where one party agrees to lend something that must be returned in kind and quantity, typically involving consumables.

Sole Benefit

refers to the principle that an action or decision must be made with the intention of benefiting only the specified individual or entity, not others.