Which of the Following Statements Is False

question 34

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 discontinuing investment in a particular line of business or country, or removing 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:

Bad News Message

A type of communication that conveys negative or undesirable information to the recipient.

Financial Implications

The potential effects or outcomes of decisions or actions on the financial health or status of an individual or organization.

Minimize Negative Announcement

Strategies or methods used to convey bad news or unfavorable decisions in a way that aims to lessen disappointment or backlash.

Strategy

A plan of action designed to achieve long-term or overall aims and objectives.