Which of the Following Statements Is False

question 111

Multiple Choice

Which of the following statements is false?

• A) Successfully completing risky activities minimizes a manager's power.
• B) A manager does not need to actually control resources to get power, as long as people perceive that the manager controls the resources.
• C) Departments that reduce uncertainty develop power.
• D) Managers with specialized expertise have power if others depend on that expertise.

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Definitions:

Expected ROE

The anticipated return on equity, predicting future profitability by estimating the rate of return on shareholders' equity.

Multistage DDM

A version of the Dividend Discount Model which assumes dividends grow at different rates in different stages of a company's life.

Treasury Bond Yields

The return investors can expect to receive from holding a government treasury bond until its maturity.

Earnings Yields

A financial metric calculated by dividing earnings per share by the current market price per share, serving as the inverse of the P/E ratio.