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The M-Form Structure Is Designed to Create Checks and Balances

question 25

True/False

The M-form structure is designed to create checks and balances for managers that increase the probability that a diversified firm will be managed in ways consistent with the interests of its equity holders.


Definitions:

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Retained Earnings

is the portion of net income that is not distributed to shareholders as dividends but is kept by the company for reinvestment or debt payment.

Date of Record

The specific date set by a corporation on which the shareholders must be on the company's books in order to receive a declared dividend or participate in a corporate action.

Cash Dividends

Payments made by a corporation to its shareholder members from its profits or reserves.

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