Which of the Following Statements Is True

question 29

Multiple Choice

Which of the following statements is true?

• A) Shareholders as a group have little or no ability to force managers to pursue maximization of the firm's value.
• B) The effectiveness of a board of directors in monitoring managers will be enhanced by appointing members from the firm who are well-informed about the management problems facing the firm.
• C) Reducing the amount of debt financing can reduce the divergence between the shareholders' interests and the owner's interests.
• D) Equity ownership by managers is thought to be one of the most effective corporate control mechanisms.
• E) All of the above are true.

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Definitions:

Sperm

The male reproductive cells or gametes in sexually reproducing organisms, responsible for fertilization.

Fertilization

The process in which an egg unites with a sperm.

Surgical Removal

The process of excising or cutting out tissue, organs, or other structures from the body, typically as part of treatment for diseases or conditions.

Uterus

A muscular organ in the female reproductive system where a fertilized egg develops into a fetus.