Which of the following statements is correct? 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. for a stock to be in equilibrium, its intrinsic value must be greater than the actual market price. most business in the u. s. is conducted by corporations, and corporations' popularity results primarily from their favorable tax treatment. conflicts can exist between stockholders and managers, but potential conflicts are reduced by the possibility of hostile takeovers. a good goal for a firm's management is the maximization of expected eps.

P8-4b dropping unfavorable division based on the following analysis of last year's operations of groves, inc., a financial vice president of the company believes that the firm's total net income could be increased by $160,000 if its design division were discontinued. (amounts are given in the thousands of dollars.) required provide answers for each of the following independent situations: a. assuming that total fixed costs and expenses would not be affected by discontinuing the design division, prepare an analysis showing why you agree or disagree with the vice president. b. assume that the discontinuance of the design division will enable the company to avoid 30% of the fixed portion of cost of services and 40% of the fixed operating expenses allocated to the design division. calculate the resulting effect on net income. c. assume that in addition to the cost avoidance in requirement (b), the capacity released by discontinuance of the design division can be used to provide 6,000 new services that would have a variable cost per service of $60 and would require additional fixed costs totaling $68,000. at what unit price must the new service be sold if groves is to increase its total net income by $180,000?

James sebenius, in his harvard business review article: six habits of merely effective negotiators, identifies six mistakes that negotiators make that keep them from solving the right problem. identify which mistake is being described. the negotiator has neglected to consider the course of action he will take if the proposed deal is not possible.

The "ideal" business, according to richard buskirk of the university of southern california: has many diverse employees.has a few, carefully selected employees.has many homogeneous employees.is a "one-man show".