Which of the Following Statements Is Most Correct

question 19

Multiple Choice

Which of the following statements is most correct?

• A) One of the ways in which firms can mitigate or reduce agency problems between bondholders and stockholders is by increasing the amount of debt in the capital structure.
• B) The threat of takeover is one way in which the agency problem between stockholders and managers can be alleviated.
• C) Managerial compensation can be structured to reduce agency problems between stockholders and managers.
• D) Statements b and c are correct.
• E) All of the statements above are correct.

Grasp the concept of multicultural organizations and strategies for cultivating diversity and inclusion.

Appreciate the role of symbols, rituals, and sagas in communicating and reinforcing organizational culture.

Acknowledge the complexity and diversity of organizational cultures and the challenges in managing cultural change.

Understand the principles and requirements for forming a valid contract, including offer, acceptance, and consideration.