Which One of the Following Statements Is TRUE

question 40

Multiple Choice

Which one of the following statements is TRUE?

• A) Outside shareholders will pay less for stock if they think the original owners will consume perquisites.
• B) Creditors have a claim on a firm's earning stream through the dividend payments they receive.
• C) An example of asset switching is an option to exchange one piece of real estate for another.
• D) An agency cost is the wage required to pay someone who is hired to perform a service.
• E) An example of an agency cost is when an attorney hires an expert witness for a trial.

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Definitions:

Employment

The condition of having paid work, involving a contractual relationship wherein one performs services under the control of another for remuneration.

World Health Organization

A specialized agency of the United Nations responsible for international public health.

Health Issues

Refers to a variety of diseases, disorders, and conditions that affect an individual's physical, mental, or emotional well-being.

Authority

The power or right to give orders, make decisions, and enforce obedience, often associated with a position of leadership or governance.