Which One of the Following Statements Is TRUE

question 11

Multiple Choice

Which one of the following statements is TRUE?

• A) Asset switching occurs when a company borrows money for a safe investment but uses it for a
• Risky investment.
• B) An example of an agency cost is when the board of directors pays a dividend to shareholders.
• C) An example of an agency cost is when an attorney hires an expert witness for a trial.
• D) The commission required by the Federal Housing Agency for a small business loan is an example of
• An agency cost.
• E) An example of an agency cost is the salary of the agent hired to work for the principal.

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Definitions:

Attainable

Something that can be achieved or reached through effort, skill, or hard work.

Specific Goals

Objectives that are clearly defined, measurable, achievable, relevant, and time-bound, aimed at guiding actions and motivating individuals or teams towards achievement.

Difficult Goals

Objectives that are challenging to achieve due to their complexity, high standards, or the significant effort required to accomplish them.

Weekly Quota

A designated target or minimum amount of work, sales, or similar measure that must be achieved in a week.