Which One of the Following Is NOT an Example of the Agency

question 21

Multiple Choice

Which one of the following is NOT an example of the agency problem?

• A)management refusing a merger because of the possibility of major changes in management
• B)taking a high-risk project to increase the value of the stock options held by management
• C)increasing the level of debt of the company to increase the return on equity value
• D)distributing a low level of dividends to have enough cash for bonuses

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Definitions:

Balanced Dimorphisms

The occurrence of two different forms or morphs of a species in the same population, maintained in a stable equilibrium through natural selection.

Population

A group of individuals of the same species living and interbreeding within a given area.

Illustration

A visualization or a depiction made by an artist, such as a drawing or painting, that complements, elucidates, or decorates text.

Founder Effect

After a small group of individuals found a new population, allele frequencies in the new population differ from those in the original population.