Which of the Following Statements Is False

question 38

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 discontinue investing in a particular line of business or country, or remove a poison pill.
• D) Any shareholder can submit a resolution that is put to a vote at the annual meeting.

---

Definitions:

Psychological Closeness

The feeling of closeness or connectedness to a person or group, which can influence attitudes, communication, and behaviors.

Social Network

A social network is an online platform that allows users to create personal profiles, connect with friends and colleagues, and share content, fostering virtual communities and interactions.

Relief

A feeling of reassurance and relaxation following release from anxiety or distress.

Accessible

Easily approachable or attainable, often used in the context of making websites usable by people with disabilities.