Which of the Following Are Disadvantages Claimed for the Shareholder

question 22

Multiple Choice

Which of the following are disadvantages claimed for the shareholder model of governance? Choose all that apply.

• A) It increases the risk of short- termism.
• B) The lack of control over management allows them to rewards themselves with large bonuses.
• C) Close monitoring make it more difficult for managers to make decisions quickly.
• D) Dispersed shareholders prevent close monitoring of management.

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Definitions:

Expiration Date

The specified date on which the options contract or other financial instrument becomes void and ceases to exist.

Marking-To-Market

The process of updating the value of an asset or liability to reflect its current market value rather than its book value.

Troy Ounce

A unit of measure for precious metals that is approximately 31.1035 grams, traditionally used in the pricing and trading of these commodities.

September Silver Contract

An agreement for the future delivery of silver in September, often used as a hedging tool or investment in the commodities market.