Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) The incentives come from owning stock in the company and from compensation that is sensitive to performance.
• B) The role of the corporate governance system is to mitigate the conflict of interest that results from the combination of ownership and control without unduly burdening managers with the risk of the firm.
• C) Punishment comes when a board fires a manager for poor performance or fraud, or when, upon failure of the board to act, shareholders or raiders launch control contests to replace the board and management.
• D) The corporate governance system attempts to align interests by providing incentives for taking the right action and punishments for taking the wrong action.

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Definitions:

Cultural Routines

Established patterns of behavior or practices that are characteristic of a particular culture or society.

Organizational Culture

The collective values, beliefs, and principles of organizational members, which shapes the organization's practices and behaviors.

Cultural Symbols

Objects, signs, or emblems that convey specific meanings and values within a culture or organization, serving as identifiers for shared beliefs and behaviors.

Shared Behaviors

Actions and practices adopted by group members that are common and observed regularly within a community or organization.