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.
Answer: D
You might also like to view...
Describe the concept of working capital
Which of these is an effective strategy for planning and delivering an informative presentation?
a. Give the audience incentive to listen by offering a reward. b. Use your favorite organizational format regardless of the topic of your speech. c. Present the information according to your own learning style. d. Let your audience rely on context clues to deduce necessary terms and ideas.
According to Hofstede’s Model of National Culture, a culture with high _________ is one in which the members of society feel uncomfortable with ambiguity.
A. long-term orientation B. power-distance C. individualism D. collectivism E. uncertainty avoidance
An unadjusted trial balance:
A. is prepared after end-of-period adjustments have been made. B. contains final amounts for assets and liabilities, but not for revenues and expenses. C. will not reflect up-to-date information for income taxes. D. cannot be used to prepare financial statements.