Which of the Following Statements Is True

question 14

Multiple Choice

Which of the following statements is true?

• A)Companies can have high growth, yet negative stock returns.
• B)A major safeguard against management's undertaking a project that is not in shareholders' best interest is the need to raise capital to fund the project.
• C)The older the firm, the more well-structured it is, and corporate control is better than it is for a newly established firm.
• D)Giving stock options to management eliminates agency conflicts.

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Definitions:

Flexible Cost-plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's variable costs, allowing flexibility in pricing.

Pricing Strategies

Tactics used by companies to determine the best price points for their products or services in order to maximize profits and market share.

Rigid Cost-plus Pricing

A pricing strategy where a fixed percentage is added to the total cost of producing a product to determine its selling price, without flexibility for market changes.

Export Markets

Countries or regions where goods and services are sold abroad, outside the producing country's borders.