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charle [14.2K]
3 years ago
12

Which of the following statements is CORRECT? a. Because of their size, large corporations face fewer regulations than smaller c

orporations and proprietorships. b. Corporations have unlimited liability. c. Corporations are taxed more favorably than 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.
Business
1 answer:
il63 [147K]3 years ago
7 0

Answer:  The following statements is correct: <em><u>Bond covenants are designed to protect bondholders and to reduce potential conflicts between stockholders and bondholders.</u></em>

Bond covenants are considered to be part of the judicial bindings that forms up a bond, irrespective of the fact whether it is issued by a institution or the authorities. They are normally  supposed to defend capitalist by rendering some certainty on the bond.

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3 years ago
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Switching costs, the number of buyers, and if the items represent a relatively small portion of the cost of finished products ar
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Switching costs, number of buyers, and if the items represent a relatively small portion of the cost of finished products are key considerations regarding the bargaining power of buyers.

Switching costs are the costs which are paid by a consumer as a result of switching brands, suppliers, or products. Some companies may employ high switching costs in order to prevent customers from moving to another brand.

Suppose if the customer purchases large volumes of standardized products from the seller, then the buyer's bargaining power is quite high.  Also, when substitute of a product is available in the market, the buyer power increases.

Hence, most prevailing switching costs are monetary in nature.

To learn more about switching costs here:

brainly.com/question/15561738

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2 years ago
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