The Control Model of Corporate Governance Is Applicable Under All

question 117

Multiple Choice

The control model of corporate governance is applicable under all of the following conditions except for

• A) Capital markets are illiquid
• B) Board members are largely insiders
• C) Ownership and control overlap
• D) Equity ownership is widely dispersed
• E) A, B, & D only

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Definitions:

Employment at Will

Employment principle that if there is no specific employment contract saying otherwise, the employer or employee may end an employment relationship at any time, regardless of cause.

Involuntary Turnover

The process where employees leave a company due to reasons outside their control, such as layoffs or terminations by the employer.

Workplace Violence

Any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior that occurs at the work site.

Interactional Justice

Refers to the perceived fairness of the interpersonal treatment individuals receive from decision-makers, including respect and propriety in communication.