Expropriation of Minority Shareholders Means That Minority Shareholders

question 19

Multiple Choice

Expropriation of minority shareholders means that minority shareholders

• A) must sell their shares upon demand.
• B) cannot own shares in foreign firms.
• C) do not receive dividends.
• D) are adversely affected by the actions of controlling shareholders.

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Definitions:

Alpha

A threshold value in hypothesis testing that determines the level of significance, usually set to 0.05 or 0.01.

Type I Error

An error in hypothesis testing that occurs when the null hypothesis is wrongly rejected, falsely indicating a significant result.

Two-tailed Hypothesis

A hypothesis test that considers both directions of an effect, allowing for the possibility of difference in either direction from the null hypothesis.

Critical Values

Specific points on the scale of a test statistic beyond which we reject the null hypothesis, crucial in hypothesis testing to determine the significance of the results.