When Company Ownership Is Diffuse

question 81

Multiple Choice

When company ownership is diffuse,

• A)a "free rider" problem discourages 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)few shareholders have a strong enough incentive to incur the costs of monitoring management.
• D)both a and c are correct

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Definitions:

Collective Bargaining Type Legislation

Laws and regulations that relate to the negotiation process between employers and a group of employees aimed at reaching agreements that regulate working conditions.

Workers' Compensation Act

Legislation designed to provide financial compensation and medical care for workers who are injured or become ill as a direct result of their job.

Employment Standards Act

Legislation that outlines minimum employment conditions such as wages, work hours, and leave entitlements to protect workers.

Notice

A formal communication or announcement, often legally required, to inform or alert parties about specific information or intentions.