Which of the Following Statements Regarding Managerial Ownership Is FALSE

question 17

Multiple Choice

Which of the following statements regarding managerial ownership is FALSE?

• A)The relationship between managerial ownership and firm value is unlikely to be the same for every firm,or even for different executives of the same firm.
• B)Even with the risk benefits of separating ownership and control,there are still examples of corporations in which the top managers have substantial ownership interests.
• C)Academic studies do not support the notion that greater managerial ownership is associated with fewer value-reducing actions by managers.
• D)While increasing managerial ownership may reduce perquisite consumption,it also makes managers harder to fire-thus reducing the incentive effect of the threat of dismissal.

Understand the significance levels (alpha, α) and their role in hypothesis testing.

Understand the relationship between sample size and the probability of making Type I or Type II errors.

Know the common strategies used to decrease the chances of making Type I or Type II errors in hypothesis testing.

Understand the importance and impact of offering benefit packages versus wage increases on employee motivation.

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Definitions:

Power Line

Electrical conductors, typically wires or cables, used to transmit electricity from the power plant to various distribution points.

Cyberloafing

Doing anything with a computer that’s unrelated to a job (such as playing video games) while one’s supposed to be working. Also called cyberslacking.

Non-Work Activities

Tasks or actions undertaken that are not related to one's job or career, often personal or recreational in nature.

Being Paid

The act of receiving money or compensation for work or services rendered.