The M-Form Structure Is Designed to Create Checks and Balances

question 66

Multiple Choice

The M-form structure is designed to create checks and balances for managers that increase the probability that a diversified firm will be managed in ways consistent with

• A) the interests of all of its stakeholders.
• B) an exclusively short-term perspective.
• C) an exclusively long-term perspective.
• D) the interests of its equity holders.

---

Definitions:

Front-End Load Fee

A charge applied at the time of purchase of an investment, typically pertaining to mutual funds.

12b-1 Fee

A fee that mutual funds may charge for marketing, distribution, and service expenses, expressed as a percentage of assets under management.

Net Asset Value

The value per share of a fund, calculated by dividing the total value of the fund's assets minus its liabilities by the number of shares outstanding.

Year-End Assets

These are the total value of all assets that a company or individual owns at the end of the fiscal year.