Which of the Following Statements Is CORRECT

question 39

Multiple Choice

Which of the following statements is CORRECT?

• A) One of the ways in which firms can mitigate or reduce potential conflicts between bondholders and stockholders is by increasing the amount of debt in the firm's capital structure.
• B) The threat of takeover generally increases potential conflicts between stockholders and managers.
• C) Managerial compensation plans cannot be used to reduce potential conflicts between stockholders and managers.
• D) The threat of takeovers tends to reduce potential conflicts between stockholders and managers.
• E) The creation of the Securities and Exchange Commission (SEC)has eliminated conflicts between managers and stockholders.

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Definitions:

Simple Sentences

Sentences that contain only one independent clause, making them easy to understand.

Choppy

Describes a style of writing or speech that is abrupt and lacks flow, often because of short, disconnected sentences.

Compound-complex Sentences

Compound-complex sentences are sentences that contain at least two independent clauses and one or more dependent clauses, allowing for a rich, nuanced expression of ideas.

Support Sentences

Sentences that provide evidence, examples, or explanations to back up a main idea or argument in writing.