Question

Which one of the following statements is TRUE?

(A) One tool of corporate governance is choosing a good investment banker.
(B) One tool of corporate governance is how the company's charter affects the likelihood of a takeover.
(C) One tool of corporate governance is a company's tax avoidance strategy.
(D) Creditors have a claim on a firm's earning stream through the dividend payments they receive.
(E) One tool of corporate governance is stock repurchases.

Answer 1

Correct Answer is "A"

(A) One tool of corporate governance is choosing a good investment banker.