Which of the Following Statements Is FALSE

question 45

Multiple Choice

Which of the following statements is FALSE?

• A)The relationship between managerial ownership and firm value is unlikely to be the same for every firm,or even for different executives of the same firm.
• B)Even with the risk benefits of separating ownership and control,there are still examples of corporations in which the top managers have substantial ownership interests.
• C)Academic studies do not support the notion that greater managerial ownership is associated with fewer value-reducing actions by managers.
• D)While increasing managerial ownership may reduce perquisite consumption,it also makes managers harder to fire-thus reducing the incentive effect of the threat of dismissal.

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Definitions:

Communicate

The act of conveying information, ideas, feelings, or instructions through verbal, written, or non-verbal means.

Integrative Negotiation

A negotiation strategy aimed at creating win-win scenarios by meeting the underlying interests of all parties.

Define

To specify or describe clearly and unambiguously.

Brainstorming

A creative group problem-solving technique that involves generating a large number of ideas or solutions without immediate evaluation.