Which of the Following Statements Is Correct

question 8

Multiple Choice

Which of the following statements is correct?

• A) When professional managers have large equity positions of their own in a company with diffused ownership, they have both the power and a motive to engage in self-dealings.
• B) When professional managers have small equity positions of their own in a company with concentrated ownership, they have both the power and a motive to engage in self-dealings.
• C) When professional managers have small equity positions of their own in a company with diffused ownership, they have both the power and a motive to engage in self-dealings.
• D) When professional managers have large equity positions of their own in a company with concentrated ownership, they have both the power and a motive to engage in self-dealings.

---

Definitions:

Simple Event

An event with only one outcome or a very straightforward outcome in a probability scenario.

Single Die

Refers to one of a pair of small objects, typically cube-shaped, with sides numbered from one to six, used in games of chance.

Monte Carlo

Monte Carlo methods are a broad class of computational algorithms that rely on repeated random sampling to obtain numerical results and estimate uncertain quantities.

Sample Space

The set of all possible outcomes of a statistical experiment.