Which One of the Following Statements Is TRUE

question 42

Multiple Choice

Which one of the following statements is TRUE?

• A) One tool of corporate governance is monitoring management.
• B) One tool of corporate governance is the choice of how much dividends to pay.
• C) A company's matching contribution to a retirement plan is a nonpecuniary benefit
• D) One tool of corporate governance is stock repurchases.
• E) Corporate governance is better when Directors are also employees of the company so they know the business very well.

---

Definitions:

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life.

Bond Investment

An investment in debt securities issued by corporations or governments to finance their operations.

Other Comprehensive Income

Other Comprehensive Income represents revenues, expenses, gains, and losses not included in net income, and reflects changes in equity during a period except those resulting from investments by and distributions to owners.