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soldier1979 [14.2K]
4 years ago
13

Which of the following statements is CORRECT? a. Corporations and partnerships have an advantage over proprietorships because a

sole proprietor is exposed to unlimited liability, but the liability of all investors in the other types of businesses is more limited. b. Because most stock ownership is concentrated in the hands of a relatively small segment of society, firms' actions to maximize their stock prices have little benefit to society. c. Most business in the U.S. is conducted by corporations, and corporations' popularity results primarily from their favorable tax treatment. d. The potential exists for agency conflicts between stockholders and managers. e. A good goal for a firm's management is maximization of expected EPS. 1 points
Business
1 answer:
maria [59]4 years ago
6 0

Answer:

d. The potential exists for agency conflicts between stockholders and managers.

Explanation:

In a company the shareholders are the owners of the company who own shares and have stake in the company. They employ managers to take care of the daily running of the company.

There is the potential of conflict between the shareholders and the management of the company because shareholders just want to make short term profit, whole the management of the company may want to take initiatives that will lead to future gains.

Management will need to communicate effectively reason for temporary slump in profits, and emphasise future gains the company stands to get.

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The mayor of your hometown has said she will request that the federal government extend a nearby interstate highway so that it p
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Answer:

  • an increase in discretionary spending and, if no other changes are made, an increase in the government's deficit
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Explanation:

A budget deficit occurs when the federal government has more spending than it recites. That is, the government has many debts and can not raise enough money to pay these debts and maintain a good standard of living for citizens. The consequences of large budget deficits cause great damage to the country, especially for people with lower incomes. For this reason, it is necessary that in a deficit situation, the government reduced spending.

This is not the case with the government shown in the question above. Even in a budget deficit situation, the government wants to extend an interstate highway that will cost $ 35 million. The result of this will be:

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Discretionary expenses are those expenses for which the government has some degree of decision.

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