Which One of the Following Statements Is TRUE

question 12

Multiple Choice

Which one of the following statements is TRUE?

• A) One tool of corporate governance is the threat of removing current management.
• B) The commission required by the Federal Housing Agency for a small business loan is an example of an agency cost.
• C) One tool of corporate governance is the choice of how much dividends to pay.
• D) Corporate governance is when an officer of a corporation is elected to public office.
• E) One tool of corporate governance is the location of the company headquarters.

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Definitions:

Finance/Accounting

The branch of business that deals with the management of money, including the processes of recording, classifying, and analyzing financial transactions.

Qualifying Sources

The process of evaluating and approving potential suppliers based on specific criteria to ensure they can meet an organization's requirements for quality, reliability, and service.

Post-Transaction Cost

Expenses incurred after a purchase, including handling complaints, returns, and warranty claims.

Total Cost of Ownership

The comprehensive assessment of the complete cost of acquisition and operation of a product or system over its useful life.