Which of the Following Statements About Corporate Governance in China

question 13

Multiple Choice

Which of the following statements about corporate governance in China is false?

• A) The Chinese governance system may be tilting toward the Western model.
• B) Private firms seek to establish political ties with the government to increase market value and avoid potential conflict between the principals.
• C) The state still uses direct and/or indirect controls to influence the strategies employed by most firms.
• D) Firms with higher state ownership tend to have lower market value and more volatility in those values over time.

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Definitions:

Intelligence

The ability to learn, understand, and apply information, solve problems, and adapt to new situations.

Collectivism

Collectivism is a cultural value that emphasizes the priority of group goals over individual goals and the importance of cohesion within social groups.

Family Loyalty

The strong feeling of support or allegiance that members of a family show towards each other.

Personal Freedom

The power or right of an individual to act, speak, or think as one wants without hindrance or restraint.