Which of the following statements is CORRECT a A good goal for

Question

Which of the following statements is CORRECT?

a. A good goal for a firm's management is the maximization of expected EPS.

b. Most business in the U.S. is conducted by corporations, and corporations' popularity results primarily from their favorable tax treatment.

c. Conflicts can exist between stockholders and managers, but potential conflicts are reduced by the possibility of hostile takeovers.

d. Corporations and partnerships have an advantage over proprietorships because a proprietor is exposed to unlimited liability, but the liability of all investors in the other types of businesses is more limited.

e. For a stock to be in equilibrium, its intrinsic value must be greater than the actual market price.

Answer

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