As More Shareholders Own Fewer Shares of Stock,shareholders' Incentives to Monitor

question 68

Multiple Choice

As more shareholders own fewer shares of stock,shareholders' incentives to monitor managerial decisions:

• A) increase.
• B) decrease.
• C) remain constant.
• D) are not relevant.

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Definitions:

Capricious

Given to sudden and unaccountable changes of mood or behavior.

Democratic And Fair

Principles or practices that are characterized by equality, justice, and impartiality within a democratic framework.

Whistle-Blowing

Disclosing any type of information or actions that are regarded as illegal, unethical, or improper within a corporation.

Crimes

Acts that are forbidden by law and punishable by the state.