Which One of the Following Statements Is TRUE

Which one of the following statements is TRUE?

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

Correct Answer:

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