Which of the Following Statements Is FALSE

question 22

Multiple Choice

Which of the following statements is FALSE?

• A)The incentives come from owning stock in the company and from compensation that is sensitive to performance.
• B)The role of the corporate governance system is to mitigate the conflict of interest that results from the combination of ownership and control without unduly burdening managers with the risk of the firm.
• C)Punishment comes when a board fires a manager for poor performance or fraud,or when,upon failure of the board to act,shareholders or raiders launch control contests to replace the board and management.
• D)The corporate governance system attempts to align interests by providing incentives for taking the right action and punishments for taking the wrong action.

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Definitions:

Stereotypes

Oversimplified, generalized beliefs about a group or category of people that can affect perception and behavior towards them, often leading to prejudice and discrimination.

Organized Whole

A concept often used in the field of Gestalt psychology, emphasizing that the mind tends to perceive objects as a part of a greater whole rather than in isolation.

Consistent Pattern

A repeated or regular manner of behavior, action, or occurrence.

Childhood Experiences

The events, relationships, and learning situations a person encounters during their formative years, significantly impacting development and personality.