Which of the following statements is most correct? O Managers who face the threat of hostile takeover are less lkely to pursue policies that maximize shareholder value compared to managers who do not face the threat of hostle takeover. O Because of their size, it is easier for sole proprietorships and partnerships to raise outside capital than it is for a corporation O Corporations face fewer regulations and taxes relative to sole proprietorship and partnership. O Corporations are taxed more favorably than sole proprietorships O One advantage to form a corporation is that the owners of the corporations have limited lability

What are some factors that can increase the risk that a corporation does not have a corporate culture that supports ethical decision making? Please explain.

If Indra intends to be a shareholder in the company over the long term, why is it that you may not have as sharp a preference for receiving dividends as compared to a shareholder who may be invested in the company for a much shorter time frame?

4. Classify each of the following factors/cases based on whether they favor a low dividend policy or high dividend policy? (explain why) A. The tax on capital gains is deferred until the gain is realized. B. Few, if any, positive net present value projects are available to a firm. C. A majority of the shareholders have a low tax rate. D. A majority of the shareholders have better investment opportunities than the firm. E The presence of an agency conflict with the company's senior managers.

The following are some of the factors that influence the market price of a corporation: I.  Industry prospects where the company operates II. Dividend declaration III. Management competency in terms of operating efficiency of the company IV. Profitability and good liquidity of the business Which of the above are external factors uncontrollable by the management?   II and III   None of the above   II, III, and IV   I and IV