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:

Spontaneously Aborted

A natural end of a pregnancy before it reaches full term without medical or surgical intervention.

Motility

Self-propulsion.

Sperm

The male reproductive cells that are responsible for fertilizing an egg during reproduction.

Deoxyribonucleic Acid (DNA)

Genetic material that takes the form of a double helix made up of phosphates, sugars, and bases.