Which of the Following Statements Is FALSE

question 27

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 favorable 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:

Centralized Authority

A management structure where decision-making and direction come from a single point or very few points within the organization.

Divisional

Pertaining to a type of organizational structure where operations are segmented based on products, services, markets, or geographies, each with its own management.

Organizational Structure

Describes the way in which a company arranges its lines of authority, communications, rights, and duties.

Geographic Regions

Large areas of land distinguished by geographical features, cultural identity, or political boundaries.