Which of the Following Statements Is CORRECT

question 9

Multiple Choice

Which of the following statements is CORRECT?

• A) Corporations face few regulations and more favorable tax treatment than do proprietorships and partnerships.
• B) Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value compared to managers who do not face the threat of hostile takeovers.
• C) Bond covenants are an effective way to resolve conflicts between shareholders and managers.
• D) Because of their simplified organization,it is easier for proprietors and partnerships to raise large amounts of outside capital than it is for corporations.
• E) One advantage to forming a corporation is that the owners of the firm have limited liability.

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Definitions:

Concrete External Traits

Observable and tangible characteristics determined by an individual's genetic makeup.

Authoritarian Parenting

A parenting style defined by high demands and low responsiveness, where parents impose strict rules and expect obedience without questioning.

Egalitarian

Pertaining to the belief in or the practice of equal rights and opportunities for all people.

Sensitivity

The ability to perceive or be aware of the nuances in emotional cues or stimuli in the environment.