Which One of the Following Statements Is TRUE

question 36

Multiple Choice

Which one of the following statements is TRUE?

• A) An example of asset switching is borrowing money to buy equipment but instead taking it to Las Vegas to gamble with it.
• B) The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.
• C) An example of an agency cost is the salary of the agent hired to work for the principal.
• D) Creditors have a claim on a firm's earning stream through the dividend payments they receive.
• E) An example of asset switching is an option to exchange one piece of real estate for another.

---

Definitions:

Thurgood Marshall

The first African-American justice on the U.S. Supreme Court, serving from 1967 to 1991, known for his legal work in dismantling racial segregation.

Dixiecrats

A political party in the United States, officially known as the States' Rights Democratic Party, that split from the Democratic Party in 1948, advocating for racial segregation and states' rights.

States' Rights Democrats

A faction within the Democratic Party that emerged in the mid-20th century, advocating for states' rights to legislate and govern without federal intervention, particularly on issues of racial segregation.

J.Strom Thurmond

A long-serving U.S. senator known for his strong support of racial segregation and opposition to civil rights legislation.