Which One of the Following Statements Is TRUE

question 4

Multiple Choice

Which one of the following statements is TRUE?

• A) One tool of corporate governance is the use of accounting control systems.
• B) An example of asset switching is an option to exchange one piece of real estate for another.
• C) One tool of corporate governance is the location of the company headquarters.
• D) An example of an agency relationship is when a supervisor hires a forklift operator.
• E) One tool of corporate governance is a company's tax avoidance strategy.

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Definitions:

Gear Lube

A high-viscosity lubricant specifically designed for transmissions, differentials, and gearboxes to protect against wear, pitting, and corrosion.

Spinout Condition

A scenario in driving where the vehicle loses traction and spins out of control, often due to slippery conditions.

Power Divider

A differential mechanism in heavy trucks that allows for distribution of power between the front and rear axles for improved traction.

Differential Carrier

The housing that contains the differential assembly, facilitating the variation in wheel speed on a vehicle.