Having a Founder and Top Executive Also Be a Major

question 3

Multiple Choice

Having a founder and top executive also be a major shareholder:

• A)always results in agency conflicts that are bad for minority shareholders.
• B)can sometimes,as in the case of Google,have benefits that outweigh the costs.
• C)is illegal in Canada and most other industrialized countries.
• D)is never beneficial to employees.
• E)inevitably leads to insider trading.

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Definitions:

Smartest Person

Often a subjective term, but generally refers to an individual with exceptional intellectual ability or achievement.

Introspection

The examination of one's own thoughts, feelings, and sensations, often as a means of self-understanding or psychological self-assessment.

Automatic Egotism

The subconscious bias towards favoring oneself over others, often manifesting in self-serving attributions.

Social Comparison

The process of evaluating oneself by comparing with others.