Which of the Following Is True of Deregulation and Airline

question 57

Multiple Choice

Which of the following is true of deregulation and airline safety in the U.S.?

• A)Airline safety has deteriorated since the deregulation of the airline industry because safety standards are determined by the airlines themselves.
• B)Airline safety has deteriorated since airline deregulation because increased competition does not give airlines any incentive to reduce the number of accidents.
• C)Since airline safety standards are set by a government agency,deregulation of routes and fares is not directly linked to airline safety.
• D)Airline safety has increased post-deregulation because airlines are now not required to insure their aircrafts against accidents.

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Definitions:

Partnerships

A business organization in which two or more individuals own and operate the business together, sharing in profits and liabilities.

Corporations

Legal entities that are separate from their owners, with the ability to own property, incur liabilities, and sell stock.

Corporation

A business firm that is a legal person. Its chief advantage is that each owner’s liability is limited to the amount of money he or she invested in the company.

Stockholders

Individuals or entities that own shares in a corporation, possessing ownership interests and rights to dividends.