Which of the Following Statements Is CORRECT

question 37

Multiple Choice

Which of the following statements is CORRECT?

• A) Corporations generally are subject to more favorable tax treatment and fewer regulations than partnerships and sole proprietorships, which is why corporations do most of the business in the United States.
• B) Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value than are managers who do not face the threat of hostile takeovers.
• C) One advantage of the corporate form of organization is that liability of the owners of the firm is limited to their investment in the firm.
• D) Because of their simplified organization, it is easier for sole proprietorships and partnerships to raise large amounts of outside capital than it is for corporations.
• E) Bond covenants are an effective way to resolve conflicts between shareholders and managers.

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Definitions:

Concept of Stress

The psychological perception of pressure or tension resulting from challenging situations or demanding circumstances.

Workplace Aggression

Behaviors in a work setting that are intended to harm or coerce others, including verbal abuse, physical threats, or other forms of intimidation.

Extreme Verbal Abuse

A form of verbal communication that is damaging, using harsh and often derogatory language to demean or belittle others.

Violence Continuum

A concept used to describe the spectrum of behaviors that range from verbal abuse to physical violence.