Which of the Following Statements Is False

question 34

Multiple Choice

Which of the following statements is false?

• A) It is important to keep in mind that good governance is value enhancing and so, in principle, is something investors in the firm should strive for.
• B) Corporate governance is a system of checks and balances that trades off costs and benefits.
• C) Because good governance is based upon a basic set of principals, like those detailed in the Cadbury Commission's findings, one should expect all firms to display similar governance structures.
• D) The costs and benefits of a corporate governance system also depend on cultural norms.

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Definitions:

Economic Efficiency

A state where resources are allocated in a way that maximizes the production of goods and services.

External Cost

Uncompensated costs that individuals or firms impose on others outside of market transactions, often associated with pollution.

Pollution Tax

A financial charge imposed on the emission of pollutants, intended to motivate reductions in harmful environmental discharges.

Unit of Production

A single complete item or a specified amount of a commodity produced.