Adolph Berle and Gardiner Means argued that widely held corporations will be run inefficiently by professional managers. Yet large, publicly-traded corporations continue to produce the bulk of the free world's output. A widely held corporation survives because:
A. ownership and control are separate.
B. its size insulates it from market competition.
C. large corporations are given tax sops by the government.
D. it can raise capital from diversified investors.
Answer: D
You might also like to view...
Martin's research (1971) supports the claim that the Interstate Commerce Commission (ICC) was a federal regulatory agency, The ICC was designed to capture market gains for the consumers of railroad services as well as for the railroad
industrialists. Indicate whether the statement is true or false
Exhibit 2-6 Production possibilities curve data A B C D E F Capital goods150 140 120 90 50 0 Consumer goods 0 20 40 60 80 100 In Exhibit 2-6, the concept of increasing opportunity costs is represented by the fact that:
A. the quantity of capital goods produced must be less than 150. B. the quantity of consumer goods is constant for each change in the quantity of capital goods produced. C. greater amounts of capital goods must be sacrificed to produce each additional unit of consumer goods. D. the amount of consumer goods produced must be greater than zero.
The Sherman Act declares that price discrimination, tying contracts, stock acquisitions between corporations, and interlocking directorates are illegal when their effect is to reduce competition.
Answer the following statement true (T) or false (F)
Business decisions about what and how much to produce are based on what:
A. consumers demand. B. maximizes market share. C. maximizes profits. D. the government wants.