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:

Cultural Transmission

The process by which culture is passed down from one generation to another, ensuring the longevity and continuity of cultural norms, values, and knowledge.

Tools

Instruments or devices used to carry out a particular function, especially in the context of physical tasks or labor.

Algorithms

A step-by-step procedure or formula for solving a problem or accomplishing a task, often used in computing and mathematics.

Heuristics

Simple, efficient rules, either hard-coded by evolutionary processes or learned, that help in making decisions, forming judgments, and solving problems.