Which of the Following Statements About Governance Mechanisms Is Misleading

question 36

Multiple Choice

Which of the following statements about governance mechanisms is misleading? 

• A) Governance mechanisms can be classified as voice-based and exit-based mechanisms. 
• B) As an external governance mechanism, private equity utilizes the stock market to discipline managers. 
• C) In general, boards are likely to use "carrots" before considering "sticks." 
• D) Product market competition complements the market for corporate control and the market for private equity.

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Definitions:

Cerebral Asymmetry

Refers to the morphological or functional differences between the two hemispheres of the brain, often influencing cognitive abilities and behaviors.

Brain Regions

Specific areas within the brain that are responsible for different functions, such as emotional regulation, sensory processing, and motor control.

Stimuli

External or internal changes that affect the senses and can elicit responses from an organism.

Cerebral Asymmetry

The anatomical, functional, and physiological differences between the two hemispheres of the brain.