Which of the Following Statements Is False

question 43

Multiple Choice

Which of the following statements is false?

• A) In many other countries, the central conflict is between what are called "controlling shareholders" and "minority shareholders."
• B) Controlling shareholders can make decisions that benefit them disproportionately relative to the minority shareholders, such as employing family members rather than the most talented managers or establishing contracts favourable to other family-controlled firms.
• C) As recent events and corporate scandals have shown, investor protection in the United States is generally seen as substandard when compared to the developed economies in the world.
• D) Much of the focus in the United States is on the agency conflict between shareholders, who own the majority of a firm but are a dispersed group, and managers, who own little of the firm and must be monitored.

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Definitions:

Bankruptcy Case

A legal proceeding involving a person or business that is unable to repay outstanding debts, overseen by a court.

Dismissed

The termination of a legal case or the discharge of an individual from employment.

Credit Counseling

A professional service that assists individuals in managing their debt, improving their credit, and making sound financial decisions.

Bankruptcy Petition

The document filed by an individual or entity declaring inability to pay debts, which initiates the bankruptcy process.