Which one of these represents a difference between business entities in Japan and in the United States?

Multiple Choice

• Lenders in Japan frequently also take ownership positions in firms to which they lend.

• Debt-equity ratios tend to be higher in the U.S. than they are in Japan.

• There tends to be greater agency issues between stockholders and bondholders in Japan as compared to the U.S.

• Bondholders in Japan are prohibited from also being shareholders in the same firm.

• The debt-equity ratios for firms in Japan and in the U.S. tend to be relatively equal.