Which One of the Following Statements Is TRUE

question 50

Multiple Choice

Which one of the following statements is TRUE?

• A) asset switching occurs when a company borrows money for a safe investment but uses it for a risky investment.
• B) an example of an agency cost is when the board of directors pays a dividend to shareholders.
• C) an example of an agency cost is when an attorney hires an expert witness for a trial.
• D) the commission required by the federal housing agency for a small business loan is an example of an agency cost.
• E) an example of an agency cost is the salary of the agent hired to work for the principal.

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Definitions:

Showrooming

The practice of examining merchandise in a physical retail store but then purchasing it online for a lower price.

Examining Products

The process of thoroughly inspecting and analyzing a product for quality, functionality, and compliance with standards.

Multichannel Marketing

A marketing strategy that involves interacting with customers via multiple channels or platforms to offer them a seamless shopping experience.

Communication Channels

The mediums through which information is transmitted from one party to another, including verbal, non-verbal, and digital pathways.