Which One of the Following Statements Is TRUE

question 34

Multiple Choice

Which one of the following statements is TRUE?

• A) A manager avoiding a positive NPV but risky project is an example of a manager-shareholder conflict.
• B) Management is said to be entrenched when the company is doing badly and is "stuck in a rut."
• C) A quarter-end bonus is an example of a nonpecuniary benefit.
• D) A company's matching contribution to a retirement plan is a nonpecuniary benefit.
• E) Company sponsorship of a local charity is an example of a nonpecuniary benefit.

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Definitions:

Antitrust Laws

Legislation intended to promote competition and prevent monopolies by regulating corporate behaviors and mergers.

Purpose

The reason for which something is done or created or for which something exists.

Oligopoly

A market structure characterized by a small number of large firms dominating the industry, leading to limited competition.

Socially Efficient Quantity

The level of production of a good or service that results in the most beneficial mix of output for society, taking into account all costs and benefits.