Question
PLEASE ANSWER ALL THE QUESTIONS . DO NOT POST INCOMPLETE SOLUTIONS. I WANT COMPLETE REASONS AND EXPLANATIONS FOR EACH ANSWER . PLEASE EXPLAIN IN A
PLEASE ANSWER ALL THE QUESTIONS . DO NOT POST INCOMPLETE SOLUTIONS. I WANT COMPLETE REASONS AND EXPLANATIONS FOR EACH ANSWER. PLEASE EXPLAIN IN A BETTER WAY.
DO NOT CLAIM IF YOU CANT ANSWER ALL 4 QUESTIONS
6) Which of the following are possible mechanisms applicable to large corporations that motivate managers to act in the best interests of the shareholders?
| a. Managerial compensation (incentives) |
| b. Shareholder intervention |
| c. Threat of a takeover by an outside entity |
| d. All of the above |
7) Two advantages of the proprietorship as a form of business organization are (1) that it is easily and inexpensively formed and (2) subject to few government regulations.
| True |
| False |
8) Which of the following is NOT a disadvantage of the proprietorship form of business organization?
| a. Setting up the corporate charter and bylaws |
| b. Unlimited personal liability for business debts |
| c. Limited to life of the individual who created the proprietorship |
| d. Ownership transfer issues |
| e. Difficulty raising large sums of capital |
9) The advantages and disadvantages of the proprietorship and partnership forms of business organization are similar, except that partnerships generally have more sources available to raise funds.
| True |
| False |
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