Which One of the Following Statements Is TRUE

question 12

Multiple Choice

Which one of the following statements is TRUE?

• A) One tool of corporate governance is the threat of removing current management.
• B) The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.
• C) One tool of corporate governance is the choice of how much dividends to pay.
• D) Corporate governance is when an officer of a corporation is elected to public office.
• E) One tool of corporate governance is the location of the company headquarters.

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Definitions:

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and is repaid to the investor.

Coupon

The yearly rate of interest distributed on a bond, represented as a percentage of its nominal value.

Interest Rate Changes

Variations in the cost of borrowing money, typically determined by central banks, influencing various financial and economic decisions.

Invoice Price

The price initially charged by a manufacturer to a retailer, before any deductions or discounts are applied.