Which One of the Following Statements Is TRUE

question 14

Multiple Choice

Which one of the following statements is TRUE?

• A) an agency cost is the reduction in firm value due to agency conflicts.
• B) an agency cost is the wage required to pay someone who is hired to perform a service.
• C) an example of an agency cost is when the board of directors pays a dividend to shareholders.
• D) an example of an agency cost is when an attorney hires an expert witness for a trial.
• E) the commission required by the federal housing agency for a small business loan is an example ofan agency cost.

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Definitions:

Melodramas

A genre of drama characterized by exaggerated emotions, stereotypical characters, and interpersonal conflicts.

Social

Pertaining to society or its organization, often involving the collective behavior and interactions among individuals within a community.

Political

Pertaining to or concerned with the affairs of government, policy-making, or the administration of the state.

Kaleidoscopic

Having complex patterns of colors; changing rapidly in a dynamic, complex manner.