Which One of the Following Statements Is TRUE

question 29

Multiple Choice

Which one of the following statements is TRUE?

• A) One tool of corporate governance is how the company's charter affects the likelihood of a takeover.
• B) One tool of corporate governance is stock repurchases.
• C) One tool of corporate governance is a company's tax avoidance strategy.
• D) One tool of corporate governance is choosing a good investment banker.
• E) Creditors have a claim on a firm's earning stream through the dividend payments they receive.

---

Definitions:

Dissolution

The process of legally dissolving a corporation or partnership, effectively bringing its existence to an end.

RUPA

Refers to the Revised Uniform Partnership Act, which is a set of laws adopted by some U.S. states to govern the formation, operation, and dissolution of partnerships.

Duty Of Loyalty

The legal obligation of individuals, such as corporate directors or employees, to act in the best interests of their company or employer.

Statute Of Frauds

A legal principle that requires certain types of contracts to be in writing to be enforceable.