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Which of the Following Statements Is Correct

Question 11

Multiple Choice

Which of the following statements is correct?


A) A good goal for a corporate manager is maximization of expected EPS.
B) Most business in the U.S.is conducted by corporations;corporations' popularity results primarily from their favorable tax treatment.
C) A good example of an agency relationship is the one between stockholders and managers.
D) Corporations and partnerships have an advantage over proprietorships because a sole proprietor is subject to unlimited liability,but investors in the other types of businesses are not.
E) Firms in highly competitive industries find it easier to exercise "social responsibility" than do firms in oligopolistic industries.

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