Which One of the Following Statements Is TRUE

question 17

Multiple Choice

Which one of the following statements is TRUE?

• A) outside shareholders will pay less for stock if they think the original owners will consume perquisites.
• B) creditors have a claim on a firm's earning stream through the dividend payments they receive.
• C) an example of asset switching is an option to exchange one piece of real estate for another.
• D) an agency cost is the wage required to pay someone who is hired to perform a service.
• E) an example of an agency cost is when an attorney hires an expert witness for a trial.

Evaluate logical arguments to validate their correctness.

Understand the concept of critical and sensitive periods in human development.

Recognize the lifelong, multidimensional, and multidirectional nature of human development as expressed by Paul Baltes.

Appreciate the role of cultural, historical, and personal factors in shaping human development.

---

Definitions:

Antimony

A brittle, lustrous gray metalloid used in alloys, flame retardants, and electronics, represented by the symbol Sb and atomic number 51.

Silicon

A chemical element with symbol Si and atomic number 14, known for its semiconductor properties in electronics.

Metals

Elements that are typically hard, shiny, malleable, fusible, and ductile, with good electrical and thermal conductivity.

Iron

A durable and abundant metallic element, symbol Fe, atomic number 26, used extensively as a component in steel and various other alloys.