Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)One study found that firms with fewer restrictions on shareholder power performed worse than firms with more restrictions during the 1990s.
• B)Some large public pension funds,such as CalPERS (the California Public Employees Retirement System),take an activist role in corporate governance.
• C)In 2004 with the Walt Disney Company,major shareholders were dissatisfied with the recent performance of Disney under long-time CEO and Chairman,Michael Eisner.They began an organized campaign to convince the majority of Disney shareholders to withhold their approval of the reelection of Eisner as director and chairman of the board.
• D)Given the importance of shareholder action in corporate governance,researchers and large investors alike have become increasingly interested in measuring the balance of power between shareholders and managers in a firm.

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Definitions:

Consolidated Balance Sheet

A financial statement that summarizes the financial position of a parent company and its subsidiaries, presenting assets, liabilities, and equity as if the group were a single entity.

Total Consolidated Assets

The aggregated value of all assets owned by a company and its subsidiaries as reported on the consolidated balance sheet.

Fair Value Option

The Fair Value Option is an accounting option that allows companies to measure selected financial assets and liabilities at fair value, aiming to provide more relevant financial information.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.