Which of the Following Statements Is Correct

question 72

Multiple Choice

Which of the following statements is correct?

• A) The major disadvantage of organizing as a corporation is that it does not provide its owners with limited liability.
• B) Bond covenants,or restrictions on debt,are an important device to reduce agency conflicts between stockholders and bondholders.
• C) The threat of a hostile takeover serves to reduce agency conflicts between stockholders and bondholders.
• D) Compensation packages are designed,in part,to reduce agency conflicts between shareholders and managers.
• E) Both answers b and d are correct.

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Definitions:

Memory B Cell

A Memory B Cell is a type of immune cell that remembers past infections, enabling the immune system to respond more quickly to repeated exposures.

Organ Rejection

The process by which a transplant recipient's immune system attacks the transplanted organ or tissue, considering it as foreign.

Cell-Mediated Immunity

An immune response that does not involve antibodies but involves the activation of phagocytes, antigen-specific cytotoxic T-lymphocytes, and the release of various cytokines in response to an antigen.

Antibody-Mediated Immunity

The aspect of immunity that involves the production of antibodies by B cells targeting specific antigens, such as pathogens or foreign substances.