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:

Disruptive Selection

Mode of natural selection in which forms of a trait at both ends of a range of variation are adaptive, and intermediate forms are selected against.

Hybrid Sterility

A condition in hybrids between different species where the offspring are sterile, unable to produce viable gametes.

Viable Gametes

Sex cells (sperm and eggs) that are capable of fertilization and development into a new organism.

Reproductive Maturity

The stage in an organism's life cycle when it becomes capable of producing offspring.