Which One of the Following Statements Is TRUE

question 37

Multiple Choice

Which one of the following statements is TRUE?

• A) Personal use of the corporate jet is an example of a nonpecuniary benefit.
• B) A supplier substituting a lower-quality raw material without approval is an example of asset switching.
• C) An agency problem occurs when an owner/manager sells stock to an outside investor and the owner/manager fears the outside investor will consume too many perquisites.
• D) An agency conflict between inside owners/managers and outside owners occurs when the outside owners sell their shares to someone else.
• E) A quarter-end bonus is an example of a nonpecuniary benefit.

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Definitions:

Personnel Files

The systematically organized records kept by an organization that contain personal and employment-related information about its employees.

Non-Company Personnel

Individuals or workers who are not direct employees of a particular organization and may include contractors, consultants, or freelancers.

Release

The act of letting go or setting someone or something free.

Employee Information

Data or records pertaining to employees, including personal details, job history, and performance evaluations.