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:

Demonstrable Effect

An outcome or result that can be clearly observed and proven through evidence or demonstration.

Psychotherapy

A method of treating mental disorders by talking about mental and emotional issues with a mental health professional.

Orientation

A person's awareness of oneself in relation to time, place, and identity; in a broader sense, it can also refer to sexual orientation or the initial introduction to a new environment or role.

Effective

Producing a desired outcome or result.