Which of the Following Statements Regarding Shareholder Actions Is FALSE

question 4

Multiple Choice

Which of the following statements regarding shareholder actions is FALSE?

• A)If managers have large ownership stakes,then shareholders are more likely to use compensation policies or a stronger board to create the desired incentives.
• B)If all else fails,the shareholders' last line of defense against expropriation by self-interested managers is direct action.
• C)A shareholder resolution could direct the board to take a specific action,such as discontinue investing in a particular line of business or country,or remove a poison pill.
• D)Any shareholder can submit a resolution that is put to a vote at the annual meeting.

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Definitions:

Awareness Problematic

A situation in which there is a lack of recognition, consideration, or understanding of issues or difficulties, leading to potential complications.

Contemplation Stage

A stage in the Transtheoretical Model of change where an individual is aware of a problem and is seriously considering addressing it but has not yet made a commitment to take action.

Action Stage

In behavior change, the phase where an individual actively implements strategies to alter a behavior, typically following preparation and planning stages.

Preparation Stage

In behavior change models, the preparation stage is when individuals intend to take action in the immediate future, often by planning or strategizing.