Which of the Following Statements Is False

question 100

Multiple Choice

Which of the following statements is false?

• A) Dual-class stock is more prevalent in the United States than it is in other countries.
• B) When a corporation has dual-class stock,the corporate insiders generally concentrate their holdings in the superior voting-share class,while ordinary investors tend to hold relatively more of the inferior voting-class stock.
• C) One purpose of a dual-class structure is to allow insiders to raise the capital needed to finance growth without losing voting control.
• D) All of the above statements are false.
• E) Only statements (a)and (b)are false.

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Definitions:

TSX

Toronto Stock Exchange, the largest stock exchange in Canada, where stocks, bonds, and other securities are bought and sold.

Incentive Schemes

Programs designed to motivate and compensate employees, often tied to performance criteria to enhance productivity and achieve corporate goals.

Ethical Behaviour

Conduct that is in accordance with accepted principles of right or wrong governing the conduct of a profession or individual.

Whistle Blowers

Individuals who expose information or activity within a private, public, or government organization that is deemed illegal, unethical, or not correct.