An Advantage of Discretionary Policy Might Be That ________

question 42

Multiple Choice

An advantage of discretionary policy might be that ________.

• A)it has been shown to be more efficient than rules
• B)it is more flexible than rules
• C)it requires a binding plan in advance to deal with economic problems
• D)all of the above
• E)none of the above

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Definitions:

Court-Appointed Receiver

A neutral third party appointed by a court to manage and oversee the property or assets that are the subject of litigation, ensuring preservation of their value during the dispute.

Voluntary Liquidation

The process in which a company's directors choose to voluntarily wind up the company's affairs, distribute its assets to creditors, and officially dissolve the business.

Liquidation Preference

A term in financial agreements that specifies the order in which creditors and investors are paid in the event of a company's liquidation.

Judicial Dissolution

A legal process through which a court orders the dissolution or termination of an entity such as a corporation or partnership based on certain grounds laid by law.