Which of the Following Statements Is Incorrect

question 16

Multiple Choice

Which of the following statements is incorrect?

• A) Managers may be tempted to make decisions that are in their own best interests rather than shareholder interests.
• B) Directors are responsible for making most of the bank's decisions regarding loans to customers, which encourages a loan department to extend loans with a very high concern for risk.
• C) To prevent agency problems, some banks provide stock as compensation to managers.
• D) The underlying goal behind the managerial policies of a bank is to maximize the wealth of the bank's shareholders

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Definitions:

American Federation of Labor

A national federation of labor unions in the United States, established in 1886, that aimed to organize skilled workers into national unions according to their crafts.

Industrial Workers

Individuals employed in sectors focused on the production and manufacturing of goods, often distinguished by their involvement in physically intensive or machinery-centric tasks.

Work Hours Reform

Work hours reform pertains to changes in legislation, policies, or practices aimed at modifying the length, distribution, or flexibility of the working hours to improve workers' well-being.

Craft Lines

Distinctions made within a trade or profession, often based on specialized skills or functions, leading to the organization and representation of labor accordingly.