Answer:
The correct answer to the following question will be Option D (Financial distress and agency costs).
Explanation:
- A cost of an agency is a form of company's internal expense that comes from an employee working on behalf of action of the principle. Agency costs usually occur from core redundancies, confusion, and delays, such as shareholder and management conflicts of interest.
- Distress expense applies to the expenses that a financially distressed company faces beyond the business cost, such as increased capital expenses. Troubled companies tend to have a tougher time fulfilling their financial responsibilities, which turns into a higher chance of default.
- When evaluating the company's value as a feature of market structure, the present value of the tax shield gain is balanced by the current value of the anticipated financial distress and agency expenses, which results in an ideal internal market structure.
Therefore, Option C is the right answer.
Answer: Registered Bonds
Explanation:
A registered bond is one that has the owner's name and contact information recorded by the issuer so as to ensure that interest payments depending on the bond terms are rightly given out and also to track claims to coupons.The two ways bonds can be registered and transferred
1. Physically by printing owners details at the back of the certificate and BY signing or endorsing a certificate during transfer of bonds,
2. Electronically bY recording on a system database for ownership claim and for transfer of bonds.
The opposite of a Registered bond is a Bearer bond, Here, the owner"s details and information are not recorded.
It is important to include a person's title when developing a reference sheet because it gives credit to the person
Risk that are caused by the response to the another risk is known as secondary risk. The first option is correct.
<h3>What are risk?</h3>
Risk refers to the possibility of the danger or harm. For example there is risk involved to change the career. The risk taken can lead to any outcome it can be positive or negative.
There are various kinds of risk one of those kind is the secondary risk in which the risk is taken as a result of the previous actions taken to deal with the situation.
Thus the correct option is Secondary risk.
Learn more about residual risk here:
brainly.com/question/6041526
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