Which of the Following Statements Is Correct

question 72

Multiple Choice

Which of the following statements is correct?

• A) The major disadvantage of organizing as a corporation is that it does not provide its owners with limited liability.
• B) Bond covenants,or restrictions on debt,are an important device to reduce agency conflicts between stockholders and bondholders.
• C) The threat of a hostile takeover serves to reduce agency conflicts between stockholders and bondholders.
• D) Compensation packages are designed,in part,to reduce agency conflicts between shareholders and managers.
• E) Both answers b and d are correct.

---

Definitions:

Billboard

A large outdoor advertising structure (sign), typically found in high-traffic areas, displaying promotional or informative messages to the public.

Employee Referrals

A recruitment method where current employees recommend potential candidates for open positions within the organization, often rewarded with incentives.

Work Habits

The consistently practiced behaviors and routines by an individual at the workplace that contribute to their efficiency and effectiveness in job performance.

Campus Recruiting

The process by which companies visit colleges and universities to recruit students and recent graduates for employment opportunities, often through career fairs and interviews.