Which of the Following Statements Is CORRECT

question 9

Multiple Choice

Which of the following statements is CORRECT?

• A) Corporations face few regulations and more favorable tax treatment than do proprietorships and partnerships.
• B) Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value compared to managers who do not face the threat of hostile takeovers.
• C) Bond covenants are an effective way to resolve conflicts between shareholders and managers.
• D) Because of their simplified organization,it is easier for proprietors and partnerships to raise large amounts of outside capital than it is for corporations.
• E) One advantage to forming a corporation is that the owners of the firm have limited liability.

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Definitions:

Middle Managers

Individuals who manage the work of first-level managers and may report to upper management, playing a crucial role in implementing organizational policies and strategies.

Top Management

The highest level of management in an organization, responsible for strategic decisions and overall direction.

Operating Employees

Workers directly involved in the production process or core operations of an organization, typically performing specific task-oriented roles.

John Holland's Model

A theory of career choice that suggests people are most satisfied in work environments that match their personality types.