Which of the Following Statements Is False

question 46

Multiple Choice

Which of the following statements is false?

• A) In many other countries, the central conflict is between what are called "controlling shareholders" and "minority shareholders."
• B) Controlling shareholders can make decisions that benefit them disproportionately relative to the minority shareholders, such as employing family members rather than the most talented managers or establishing contracts favorable to other family controlled firms.
• C) As recent events and corporate scandals have shown, investor protection in the United States is generally seen as substandard when compared to the developed economies in the world.
• D) Much of the focus in the United States is on the agency conflict between shareholders, who own the majority of a firm but are a dispersed group, and managers, who own little of the firm and must be monitored.

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Definitions:

FIFO inventory cost method

An inventory valuation method where the cost of goods sold is based on the cost of the earliest purchased items, standing for "First In, First Out".

Ending inventory value

The final value of all unsold goods at the end of an accounting period.

FIFO

First-In, First-Out, an inventory valuation method where goods produced or acquired first are sold, used, or disposed of first.

Merchandise inventory

The goods and products that a retailer, wholesaler, or distributor has in stock and available for sale to customers.