Which of the Following Statements Is CORRECT

question 60

Multiple Choice

Which of the following statements is CORRECT?

• A)One disadvantage of organizing a business as a corporation rather than a partnership is that the equity investors in a corporation are exposed to unlimited liability.
• B)Using restrictive covenants in debt agreements is an effective way to reduce conflicts between stockholders and managers.
• C)Managers generally welcome hostile takeovers since the "raider" generally offers a price for the stock that is higher than the price before the takeover action started.
• D)The managers of established, stable companies sometimes attempt to get their state legislatures to impose rules that make it more difficult for raiders to succeed with hostile takeovers.
• E)Most business in the U.S. is conducted by corporations, and corporations' popularity results primarily from their favorable tax treatment.

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Definitions:

Fastest-growing Households

Households that are increasing in size or economic status at a rate significantly higher than the average.

American Household

A domestic unit in the United States, which may consist of family members and/or other unrelated individuals who live together.

Metropolitan Statistical Area

A geographical region with a relatively high population density at its core and close economic ties throughout the area, used in statistical analysis and policy making.

Urbanized Area

A densely populated area characterized by high human settlement and infrastructure such as roads, buildings, and utilities that support a city or town.