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:

Professional Insurance

Insurance coverage designed to protect professionals from liability claims resulting from their business activities, such as errors, omissions, or neglect.

Malpractice Insurance

A type of professional liability insurance that provides coverage to healthcare professionals for claims arising from allegations of medical errors or negligence.

Existing Risk

Refers to the current risks involved in a situation or transaction, especially those that have already been identified or assessed.

Valid Contract

A legally binding agreement that meets all required elements, including offer, acceptance, consideration, and mutual consent.