Which of the Following Statements Is FALSE

question 35

Multiple Choice

Which of the following statements is FALSE?

• A)One study found that firms with fewer restrictions on shareholder power performed worse than firms with more restrictions during the 1990s.
• B)Some large public pension funds,such as CalPERS (the California Public Employees Retirement System),take an activist role in corporate governance.
• C)In 2004 with the Walt Disney Company,major shareholders were dissatisfied with the recent performance of Disney under long-time CEO and Chairman,Michael Eisner.They began an organized campaign to convince the majority of Disney shareholders to withhold their approval of the reelection of Eisner as director and chairman of the board.
• D)Given the importance of shareholder action in corporate governance,researchers and large investors alike have become increasingly interested in measuring the balance of power between shareholders and managers in a firm.

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Definitions:

Technological Control

The use of technology to regulate activities or processes, often to increase efficiency or enforce standards.

Direct Control

The exercise of authority to manage and govern organizations or territories with overt power, typically involving clear and immediate commands.

Organizational Culture

Describes the shared values, beliefs, customs, and practices of the members within an organization that shape its social and psychological environment.

Resist

To oppose or strive against something, whether it be physical forces, authority, or change, often requiring effort or struggle.