Which of the Following Is a Characteristic of a Corporation

question 350

Multiple Choice

Which of the following is a characteristic of a corporation but not of a small family-owned business?

• A)The corporation buys inputs in markets for the factors of production.
• B)The corporation sells output in markets for goods and services.
• C)The corporation is guided in its decisions by the objective of profit maximization.
• D)The corporation faces a principal-agent problem created by the separation of ownership and control.

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Definitions:

Urea

A waste product formed in the liver, broken down from proteins, and excreted in urine.

ADH

Antidiuretic hormone, involved in regulating water balance in the body by increasing the concentration of water in the blood.

Collecting Duct

A tube-like structure in the kidney nephrons responsible for the final modification of urine and its concentration by reabsorbing water.

Permeability

The capacity of a material or membrane to allow fluids or gases to pass through it.