Question 7 (1 point) Most decisions made by corporations create costs to society. Which of the following is the most efficient way to reduce these social costs? (Efficiency implies that the costs created for the non-guilty are minimized.) a) Make managers take ethics classes O b) Make it illegal to create social costs c) Convince customers to stop buying the firm's products and investors to sell their stock d) Take legal action against companies that create costs for society Previous Page Next Page Page 7 of 24 Submit Quiz 4 of 30 questions savedQuestion 20 (1 point) Stock buybacks have increased in popularity over the last decade in the United States. Which of the following is the most likely explanation for the phenomenon? O a) Pension funds, which are tax exempt, hold a larger proportion of equity than they used to. b) Dividends are taxed at higher rates than capital gains. O c) Firms are less certain about future earnings and cash flows. O d) Buybacks reduce the number of shares outstanding O e) None of the above Previous Page Next Page Page 20 of 24