What Best Describes the Separation of Ownership and Control

question 41

Multiple Choice

What best describes the separation of ownership and control?

• A) Shareholders own stocks but do not run the company.
• B) Shareholders can freely trade the company stocks.
• C) Shareholders provide necessary information to the company.
• D) Managers control the company but may also have stock ownership.

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Definitions:

Consistency

The quality of maintaining uniformity, coherence, and reliability in actions, attitudes, or conditions over time.

Consensus

A general agreement among a group of people, often used as a means of decision-making.

Fundamental Attribution Error

Refers to the tendency of individuals to overemphasize personality-based explanations for behaviors observed in others while underestimating the influence of situational factors.

Attribution Theory

A psychological theory focused on how individuals interpret events and how this relates to their thinking and behavior.