The Separation of the Company's Ownership and Control

question 22

Multiple Choice

The separation of the company's ownership and control,

• A)is especially prevalent in such countries as the United States and the United Kingdom, where corporate ownership is highly diffused.
• B)is especially prevalent in such countries as the Italy and Mexico, where corporate ownership is highly concentrated.
• C)is a rational response to the agency problem.
• D)none of the above

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Definitions:

Entrepreneurship

Engaging in the creation of a business or multiple businesses, undertaking economic risks in anticipation of making a profit.

Skills

The ability, coming from one's knowledge, practice, aptitude, etc., to do something well.

Corporate Entrepreneurs

Individuals within a large company who develop new ideas, products, or business models, effectively acting as entrepreneurs within the corporate structure.

Entrepreneurs

Individuals who, recognizing opportunities, take on the financial risk of starting and managing a new business venture.