Which of the Following Statements Is Most Correct

question 31

Multiple Choice

Which of the following statements is most correct?

• A) Agency conflicts between stockholders and managers are not really a problem when outsiders (i.e., non-managers) own shares in a corporation.
• B) Managers may operate in stockholders' best interests, or managers may operate in their own personal best interests. As long as managers stay within the law, there are no effective controls that stockholders can implement to control managerial decision making.
• C) The agency conflicts between bondholders and stockholders can be reduced with the use of bond covenants.
• D) An agency relationship exists when one or more persons hire another person to perform some service but withhold decision-making authority from that person.
• E) All of the statements above are false.

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Definitions:

In Vivo Desensitization

One key step in the behavioral treatment of a phobia in which the patient is gradually exposed to the phobic stimulus.

Systematic Desensitization

A therapeutic technique used to help individuals overcome phobias and anxiety by gradual exposure to the feared object or situation while teaching relaxation techniques.

Aversion Therapy

A psychological treatment method where undesirable behaviors are discouraged by associating them with unpleasant stimuli.

Contingency Management

A behavioral therapy technique that reinforces positive behavior with rewards or discourages negative behavior with penalties.