The Separation of Ownership and Control Is the Most Effective

question 85

True/False

The separation of ownership and control is the most effective means used by firms to prevent managerial opportunism.

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Definitions:

SEC

Securities and Exchange Commission, a U.S. government agency that oversees securities transactions, activities of financial professionals, and the stock and options exchanges.

Issuers

Entities that create and issue financial securities, such as stocks and bonds, to finance operations, expand their business, or undertake new projects.

Registration Statement

A set of documents, including a prospectus, filed with the Securities and Exchange Commission (SEC) for a company intending to go public.

SEC

stands for the Securities and Exchange Commission, which is a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry.