Which One of the Following Statements Is TRUE

question 36

Multiple Choice

Which one of the following statements is TRUE?

• A) An example of asset switching is borrowing money to buy equipment but instead taking it to Las Vegas to gamble with it.
• B) The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.
• C) An example of an agency cost is the salary of the agent hired to work for the principal.
• D) Creditors have a claim on a firm's earning stream through the dividend payments they receive.
• E) An example of asset switching is an option to exchange one piece of real estate for another.