The Key Weakness of the Public Corporation Is

question 12

Multiple Choice

The key weakness of the public corporation is

• A)too many shareholders, which makes it difficult to make corporate decision.
• B)relatively high corporate income tax rates.
• C)conflicts of interest between managers and shareholders.
• D)conflicts of interests between shareholders and bondholders.

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Definitions:

Prevent Arbitrage

Measures taken to stop the practice of buying a product in one market at a low price and selling it in another at a higher price to profit from the price difference.

Indirect Price Discrimination

A pricing strategy where different prices are charged for the same product or service in different markets or segments, not directly based on customer characteristics but indirectly through product versioning, location, or other non-personal factors.

Different Value Customers

Consumers categorized based on their value or profitability to a business, affecting how they are marketed to and served.

High-End Professional Series

Products or services that are designed and marketed to meet the demands and expectations of professional-grade users, often featuring advanced capabilities and superior quality.