Use the Following Statements to Answer This Question

question 54

Multiple Choice

Use the following statements to answer this question:

• A) I and II are correct.
• B) I and II are incorrect.
• C) I is correct and II is incorrect.
• D) I is incorrect and II is correct.
• I.Increasing a firm's debt can decrease the agency costs faced by shareholders.
• II.Agency costs affect only shareholders.

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Definitions:

Intellectual Abilities

The capacity to engage in abstract thinking, understanding complex ideas, reasoning, and problem-solving, often considered as part of cognitive abilities.

Signal Detection

A technique used to determine the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

Yea-Sayers

Individuals who have a tendency to agree with statements or questions, often affecting the validity of survey or psychological test results.

Naysayers

Individuals who express negativity or skepticism towards ideas, plans, or changes, often discouraging progress.