Which of the following statements is CORRECT?
A. Corporations are taxed more favorably than proprietorships.
B. Corporations have unlimited liability.
C. Because of their size, large corporations face fewer regulations than smaller corporations and proprietorships.
D. Reducing the threat of corporate takeover increases the likelihood that managers will act in shareholders' interests.
E. Bond covenants are designed to protect bondholders and to reduce potential conflicts between stockholders and bondholders.
Answer: E
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For several years, Flame Corporation has had a current ratio that was consistent with other companies in its industry. For the most recent year, Flame's current ratio was significantly higher than that for the industry. What is the best possible explanation for this situation?
a. The other companies in the industry were not as profitable. b. Flame's liquidity has improved or is not leveraging financial resources effectively. c. Flame has less property, plant and equipment than other companies. d. Flame has too much debt.
After determining a clear and meaningful purpose for a communication, what is the next step in planning the communication?
A) Understanding the needs of the audience B) Writing the communication C) Refining the topics to be covered in the communication D) Developing the first draft of the communication E) Determining the channel and medium for the communication
The expectancy theory of motivation is employed to explain the motivation process in ______.
A. supportive leadership B. participative leadership C. achievement-oriented leadership D. path–goal theory
The ability of a corporation to obtain capital is:
A) less than a partnership. B) about the same as a partnership. C) restricted because of the limited life of the corporation. D) enhanced because of the limited liability and the ease of share transferability.