Check your understanding of the word “policy" and other key words from this lesson. Match each word to the phrase that best defines it.
policy
to promise and deliver a future result
guarantee
the personal rights of a citizen to be
treated fairly under the law
civil rights
a government in which the structure is
set in a written constitution
constitutional democracy
a plan of action taken by a government
to achieve a goal

Which of the following statements is correct? a. the managers of established, stable companies sometimes attempt to get their state legislatures to remove rules that make it more difficult for raiders to succeed with hostile takeovers. b. hostile takeovers are most likely to occur when a firm's stock is selling below its intrinsic value as a result of poor management. c. stockholders in general would be better off if managers never disclosed favorable events and therefore caused the price of the firm's stock to sell at a price below its intrinsic value. d. the efficiency of the u.s. economy would probably be increased if hostile takeovers were absolutely forbidden. e. in general, it is more in bondholders' interests than stockholders' interests for a firm to shift its investment focus away from safe, stable investments and into risky investments, especially those that primarily involve research and development. icon key question 6 of 10 b multiple choice 01-060