Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)It is important to keep in mind that good governance is value enhancing and so,in principle,is something investors in the firm should strive for.
• B)Corporate governance is a system of checks and balances that trades off costs and benefits.
• C)Because good governance is based upon a basic set of principles,like those detailed in the Cadbury Commission's findings,one should expect all firms to display similar governance structures.
• D)The costs and benefits of a corporate governance system also depends on cultural norms.

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Definitions:

Predatory Pricing

A competitive strategy where a firm sets very low prices with the intent to drive competitors out of the market or hinder their ability to compete.

Showrooming

The practice of examining merchandise in a traditional brick and mortar retail store without purchasing it, then shopping online to find a better deal on the same item.

Price Discrimination

A pricing strategy where identical or similar products or services are sold at different prices to different customers.

Price Fixing

An illegal agreement between parties to set prices at a certain level, preventing fair competition and manipulating the market.