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:

Schizophrenogenic Mother

A type of mother—supposedly cold, domineering, and uninterested in the needs of her children—who was once thought to cause schizophrenia in her child.

Schizophrenia

A serious psychological impairment manifesting in disruptions to thinking, experiencing, emotional regulation, articulation, self-identity, and social conduct.

Mentally Ill Chemical Abusers

Individuals who suffer from both a substance misuse problem and a mental health disorder, indicating a need for integrated treatment approaches.

Mentally Ill Chemical Abusers

Individuals who suffer from both mental health disorders and substance abuse issues, requiring integrated treatment approaches.