When Company Ownership Is Diffuse

question 11

Multiple Choice

When company ownership is diffuse,

• A)a "free rider" problem encourages shareholder activism.
• B)the large number of shareholders ensures strong monitoring of managerial behavior because with a large enough group,there's almost always someone who will to incur the costs of monitoring management.
• C)most shareholders will have a strong enough incentive to incur the costs of monitoring management.
• D)a "free rider" problem discourages shareholder activism and few shareholders have a strong enough incentive to incur the costs of monitoring management.

---

Definitions:

Transference

A phenomenon in psychoanalysis where patients project feelings about important people in their past onto their therapists.

Abreaction

The expression and consequent release of previously repressed emotion, usually achieved through recalling the experience that led to the emotion during therapy.

Gestalt Therapy

A form of psychotherapy emphasizing personal responsibility, and focusing upon the individual's experience in the present moment, their environment, and the social contexts of their life.

Overt Behavior

Observable actions or responses of an individual, which can be seen and measured.