Which One of the Following Statements Is TRUE

question 44

Multiple Choice

Which one of the following statements is TRUE?

• A) one tool of corporate governance is how the company's charter affects the likelihood of a takeover.
• B) one tool of corporate governance is stock repurchases.
• C) one tool of corporate governance is a company's tax avoidance strategy.
• D) one tool of corporate governance is choosing a good investment banker.
• E) creditors have a claim on a firm's earning stream through the dividend payments they receive.

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Definitions:

Family of Measures

A collection of metrics or indicators used collectively to assess various dimensions or components of an organization's performance, acknowledging that no single measure can capture the complexity of organizational effectiveness.

Goal-Sharing Plans

Incentive plans that reward employees when collective goals or targets set by the organization are achieved, fostering teamwork and collaboration.

Allocating Bonus

The distribution of financial rewards to employees, over and above their regular pay, based on performance criteria, company profitability, or other achievement metrics.

Goal-Sharing Bonus

A bonus system where employees receive rewards if the company achieves certain predefined goals, promoting teamwork and alignment with business objectives.