Which One of the Following Is Least Likely to Be

question 14

Multiple Choice

Which one of the following is least likely to be an agency problem?

• A)increasing the size of a firm
• B)concentrating on maximizing current profits
• C)closing a division with net losses
• D)increasing the market value of the firm's shares
• E)obtaining a patent for a new product

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Definitions:

Employer-Paid Premiums

Employer-paid premiums are the amounts paid by an employer for employee benefits such as health insurance, which are often exempt from taxable income for the employee.

Life Insurance

A contract that pays a designated beneficiary a sum of money upon the death of the insured individual or after a set period.

Taxable

Refers to income or transactions that can be taxed by the government.

Savings Bond Interest

The interest earned from holding U.S. savings bonds, which may be tax-exempt for educational purposes under certain conditions.