Which One of the Following Statements Is Correct

question 47

Multiple Choice

Which one of the following statements is correct?

• A) Mergers benefit shareholders but not creditors.
• B) Positive NPV projects will automatically benefit both creditors and shareholders.
• C) There may be conflicts between the interests of bondholders and shareholders.
• D) Creditors prefer negative NPV projects while shareholders prefer positive NPV projects.
• E) Mergers rarely affect bondholders.

---

Definitions:

Vroom-Jago

A decision-making model that helps leaders choose the best method of decision making under different conditions.

Leadership Models

Theoretical frameworks or approaches describing how leadership can be effectively exercised within organizations or groups.

Differs

Indicates a variance or disparity between two or more items, ideas, or individuals.

Political Behavior

Actions and activities within an organization that are aimed at acquiring, developing, and using power and other resources to obtain one's preferred outcomes.