Which One of the Following Statements Is TRUE

question 38

Multiple Choice

Which one of the following statements is TRUE?

• A) An example of asset switching is when a company borrows for a new manufacturing facility but then uses it
• To repurchase its own stock.
• B) An example of an agency cost is when an attorney hires an expert witness for a trial.
• C) The commission required by the Federal Housing Agency for a small business loan is an example of
• An agency cost.
• D) An example of an agency cost is the salary of the agent hired to work for the principal.
• E) Creditors have a claim on a firm's earning stream through the dividend payments they receive.

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Definitions:

Stimulus-response Model

A communication or behavioral theory suggesting that an external stimulus can elicit a particular response from an individual or audience.

Sales Presentation

A promotional talk or demonstration given to introduce or describe a product or service to potential buyers, aiming to persuade them to make a purchase.

Black Box

A system or device where the inputs and outputs are known, but the internal workings are not visible or easily understood.

FAB Sequence

A sales technique focusing on Features, Advantages, and Benefits of a product, aimed at highlighting its uniqueness and importance to the customer.