Which One of the Following Statements Is Correct

question 4

Multiple Choice

Which one of the following statements is correct?

• A)The main corporate governance problem under strong control and dispersed ownership is the expropriation of the minority shareholders by the large shareholder.
• B)In the presence of weak control and concentrated ownership, the classic corporate governance problem, i.e. the principal-agent problem, prevails.
• C)In the presence of weak control and dispersed ownership, the classic corporate governance problem, i.e. the principal-agent problem, prevails.
• D)All of the above are correct.

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Definitions:

Exchange Rate Exposure

The potential for a company's profitability, net cash flow, and market value to change because of a change in exchange rates.

Exchange Rate Quotations

The price of one currency in terms of another currency, commonly used in international trade and investment transactions.

Direct Quotations

Refers to the use of exact words from a source material, enclosed in quotation marks, in a written document.

Foreign Currency Depreciate

Foreign Currency Depreciate occurs when the value of a foreign currency falls relative to another currency, impacting international trade and investments.