Which of the Following Statements Is Incorrect

question 16

Multiple Choice

Which of the following statements is incorrect?

• A) Managers may be tempted to make decisions that are in their own best interests rather than shareholder interests.
• B) Directors are responsible for making most of the bank's decisions regarding loans to customers, which encourages a loan department to extend loans with a very high concern for risk.
• C) To prevent agency problems, some banks provide stock as compensation to managers.
• D) The underlying goal behind the managerial policies of a bank is to maximize the wealth of the bank's shareholders

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Definitions:

Parasympathetic Stimulation

Activation of the parasympathetic nervous system, leading to responses such as decreased heart rate and increased digestive activity.

Acetylcholine Agonists

Substances that mimic the action of acetylcholine, a neurotransmitter, stimulating the acetylcholine receptor sites.

Sympathetic Stimulation

Activation of the sympathetic nervous system, which increases heart rate, blood pressure, and energy availability; often referred to as the "fight or flight" response.

ANS

The Autonomic Nervous System, a part of the nervous system that controls involuntary actions such as the heartbeat, digestion, and respiratory rate.