Which One of the Following Statements Is TRUE

question 13

Multiple Choice

Which one of the following statements is TRUE?

• A) an example of asset switching is borrowing money to buy equipment but instead taking it to las vegas to gamble with it.
• B) the commission required by the federal housing agency for a small business loan is an example of an agency cost.
• C) an example of an agency cost is the salary of the agent hired to work for the principal.
• D) creditors have a claim on a firm's earning stream through the dividend payments they receive.
• E) an example of asset switching is an option to exchange one piece of real estate for another.

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Definitions:

Areolar connective Tissue

A type of connective tissue that is loose and composed of collagen and elastin fibers, providing support and flexibility.

Visceral Peritoneum

The layer of the peritoneum that covers the external surfaces of most abdominal organs, including the intestines.

Renal Capsule

The fibrous, supportive outer covering of the kidney that protects it from injury and maintains its shape.

Renal Fascia

A layer of connective tissue encapsulating the kidneys and the adrenal glands, providing structural support and protection.