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Which of the Following Statements Is True

Question 1

Multiple Choice

Which of the following statements is true?


A) Companies can have high growth, yet negative stock returns.
B) A major safeguard against management's undertaking a project that is not in shareholders' best interest is the need to raise capital to fund the project.
C) The older the firm, the more well-structured it is, and corporate control is better than it is for a newly established firm.
D) Giving stock options to management eliminates agency conflicts.

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