Which of the Following Statements Is Correct

question 11

Multiple Choice

Which of the following statements is correct?

• A) A good goal for a corporate manager is maximization of expected EPS.
• B) Most business in the U.S.is conducted by corporations;corporations' popularity results primarily from their favorable tax treatment.
• C) A good example of an agency relationship is the one between stockholders and managers.
• D) Corporations and partnerships have an advantage over proprietorships because a sole proprietor is subject to unlimited liability,but investors in the other types of businesses are not.
• E) Firms in highly competitive industries find it easier to exercise "social responsibility" than do firms in oligopolistic industries.

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Definitions:

Transactional Leadership

Transactional Leadership is a style focused on the exchange between leader and followers, where followers are rewarded for specific achievements or penalized for failures.

High LPC

stands for High Least Preferred Coworker score, indicating a leadership style that is more relationship-oriented and concerned with maintaining good interpersonal relations.

Idealized Influence

A leadership approach where leaders earn respect and admiration, inspiring followers through their vision and personal behavior.

Transformational Leadership

A style of leadership that inspires and stimulates followers to exceed their own interests for a collective purpose.