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.

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Definitions:

Cost of Goods Sold

A duplicated term; refers to the direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Ending Inventory

The value of goods available for sale at the end of an accounting period, after accounting for all sales and purchases during the period.

Average Sale Period

The average amount of time it takes for a company to convert its inventory into sales, reflecting the efficiency and effectiveness of its sales and inventory management.

Cost of Goods Sold

The specific expenses directly associated with the manufacturing of products a company sells, such as raw materials, workforce costs, and overhead expenses related to the production process.