Which of the Following Statements Is False

question 34

Multiple Choice

Which of the following statements is false?

• A) If managers have large ownership stakes, then shareholders are more likely to use compensation policies or a stronger board to create the desired incentives.
• B) If all else fails, the shareholders' last line of defense against expropriation by self-interested managers is direct action.
• C) A shareholder resolution could direct the board to take a specific action, such as discontinuing investment in a particular line of business or country, or removing a poison pill.
• D) Any shareholder can submit a resolution that is put to a vote at the annual meeting.

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Definitions:

Trillion

A numerical value representing a thousand billion, or 1,000,000,000,000, commonly used in discussing government budgets, economic indicators, and astronomical distances.

Public Debt

The amount of federal securities outstanding, which represents what the federal government owes (the accumulation of federal deficits minus surpluses over the last two centuries).

GDP

Gross Domestic Product, which is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Foreigners

Individuals or entities from one country that are located in or interacting with another country.