Which One of the Following Statements Is Correct

question 63

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)Shareholders might prefer a negative NPV project over a positive NPV project.
• D)Creditors prefer negative NPV projects while shareholders prefer positive NPV projects.
• E)Mergers rarely affect bondholders.

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Definitions:

Socialist Societies

Societies that adopt a socialist system, emphasizing public or collective ownership and the distribution of resources and wealth for achieving equality and social justice.

Economic Determinism

The theory that economic forces and structures are the primary determinants of almost every aspect of society, including political and social conditions.

Scientific Method

A systematic approach to research in which questions are answered through experiments and observations, leading to empirical evidence.

Society

A collection of people engaged in continuous social interactions, or a significant social group inhabiting the same geographical or social region, generally governed by the same political authority and prevailing cultural norms.