Which of the Following Statements Is CORRECT

question 12

Multiple Choice

Which of the following statements is CORRECT?

• A) One disadvantage of organizing a business as a corporation rather than a partnership is that the equity investors in a corporation are exposed to unlimited liability.
• B) Using restrictive covenants in debt agreements is an effective way to reduce conflicts between stockholders and managers.
• C) Managers generally welcome hostile takeovers since the "raider" generally offers a price for the stock that is higher than the price before the takeover action started.
• D) The managers of established,stable companies sometimes attempt to get their state legislatures to ​impose rules that make it more difficult for raiders to succeed with hostile takeovers.
• E) Most business in U.S.is conducted by corporations,and corporations' popularity results primarily from their favorable tax treatment.

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Definitions:

Marxism

A socio-economic ideology which argues that class struggle is a central element in the analysis of social change in Western societies, developed by Karl Marx.

Buddhism

A major world religion or philosophy founded in northeastern India in the 5th century BC, based on the teachings of Siddhartha Gautama, known as the Buddha.

Freedom Summer

A 1964 voter registration drive aimed at increasing the number of registered black voters in Mississippi.