Which of the Following Statements Is Correct

question 5

Multiple Choice

Which of the following statements is correct?

• A)Agency costs can be minimized by separating decision management from decision control.
• B)Specific internal accounting procedures,such as standard costs,aid in decision management.
• C)For decision management,most managers prefer accounting numbers.
• D)Departments and companies with lower stock turns are using their capital more efficiently by limiting the number of times inventory is replaced during the period.
• E)All of the choices are correct.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market, indicating the stock's risk in comparison to the market average.

Selection Within Markets

The strategy of selecting specific securities for investment within a particular market or sector to optimize returns.

Abnormal Return

Abnormal return is the difference between the actual return of a security and its expected return, based on risk and market performance, indicating performance indicative of events or conditions unique to that security.

Bonds

A type of fixed-income investment where an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.