Which One of the Following Statements Is TRUE

question 40

Multiple Choice

Which one of the following statements is TRUE?

• A) Outside shareholders will pay less for stock if they think the original owners will consume perquisites.
• B) Creditors have a claim on a firm's earning stream through the dividend payments they receive.
• C) An example of asset switching is an option to exchange one piece of real estate for another.
• D) An agency cost is the wage required to pay someone who is hired to perform a service.
• E) An example of an agency cost is when an attorney hires an expert witness for a trial.

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Definitions:

Corpus Callosum

A broad group of nerve fibers linking the brain's two hemispheres, enabling communication between them.

The Basal Ganglia

A group of structures in the brain involved in processing information related to movement, emotions, and learning.

Semipermeable

A type of membrane that allows certain substances to pass through it while blocking others, often used in biological and chemical contexts.

Cell Membranes

The semipermeable membranes that surround cells, controlling the movement of substances in and out of the cell.