Which of the Following Statements Is Correct

question 1

Multiple Choice

Which of the following statements is correct?

• A)A good goal for a firm's management is maximization of expected EPS.
• B)Like corporations, the board of directors for an income trust supervises the operating entity on behalf of unitholders.
• C)There is a legal obligation to pay cash distributions for income trusts.
• D)Agency conflicts easily arise between shareholders and managers.

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Definitions:

Scarce Resources

Economic or environmental term referring to limited availability of resources that are desired or needed.

Conflict Structure

The underlying framework or pattern of relationships, interests, and power dynamics that characterize a conflict.

Hiring a Mediator

The act of engaging an impartial third party to facilitate the resolution of a dispute between conflicting parties.

Balance Power

The distribution of power among various parties in a way that no one side has dominance over the others.