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:

SWOT Analysis

A strategic planning tool used to identify and understand Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Sales Process

A sequence of steps taken by a sales team to move a potential customer from early interest to the final purchase.

Trade Shows

Events where companies in a specific industry showcase and demonstrate their new products or services to potential buyers.

Salesperson's Time

Salesperson's time involves the allocation and management of a sales professional's working hours to optimize sales activities, customer meetings, and administrative tasks.