In Corporate Governance, Most Small Shareholders

question 13

Multiple Choice

In corporate governance, most small shareholders:

• A)​Attend annual shareholder meetings.
• B)​Have strong incentives to monitor how the firm is being run.
• C) ​Prefer to free-ride and hope other shareholders monitor manager behavior.
• D) ​Rarely hold stock for a long period of time.

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Definitions:

Implicit Costs

Expenses that are not directly paid for or incurred in cash, representing the opportunity cost of using resources owned by the business.

International Migrants

Individuals who move from their country of origin to another country, aiming to settle temporarily or permanently in the new country.

Labor Immigration

The movement of people from one country to another primarily for employment opportunities.

Destination Country

A country to which people are moving or goods are being shipped.