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:

Bilateral Animals

Animals that possess bilateral symmetry, having a body plan in which the left and right sides mirror each other.

Coelomic Fluid

A fluid found within the coelom, the body cavity of most animals, that serves various functions including circulation and the provision of a hydrostatic skeleton.

Mesoderm

The middle layer of an embryo in multicellular organisms, giving rise to muscles, bones, and the circulatory system among other structures.

Water-Vascular System

A network of hydraulic canals unique to echinoderms, such as starfish, used for locomotion, feeding, and respiration.