Which One of the Following Statements Is TRUE

question 32

Multiple Choice

Which one of the following statements is TRUE?

• A) a manager/shareholder agency conflict arises when the manager's actions aren't in the company's best interest.
• B) an agency problem occurs when an owner/manager sells stock to an outside investor and the owner/manager fears the outside investor will consume too many perquisites.
• C) an agency conflict between inside owners/managers and outside owners occurs when the outside owners sell their shares to someone else.
• D) a quarter-end bonus is an example of a nonpecuniary benefit.
• E) a company's matching contribution to a retirement plan is a nonpecuniary benefit.

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Definitions:

Conditioned Reflex

A learned response to a previously neutral stimulus that becomes elicited by the stimulus through repeated pairings with an unconditioned stimulus.

Animal's History

The background or past experiences of an animal, including its behaviors, lineage, and interactions with humans or other animals.

Empiricist Philosophers

Thinkers who argue that knowledge comes primarily from sensory experience as opposed to innate ideas.

Associations

Refers to the connections or correlations between two variables or concepts, often studied in psychology and statistics to understand how they influence each other.